Former Vice President Dr. Mahamudu Bawumia’s gold-backed economic framework provides a credible path for Ghana to exit the cycle of IMF bailouts, Dr. Gideon Boako, his economic advisor, has argued.
In the third edition of his Economic Digest posted on his Facebook on Sunday, September 13, 2026, Dr. Boako described the framework as “The Bawumia Doctrine of Gold-Backed Stability,” stating that Ghana had built a bridge at a time when the Bretton Woods order is fraying.
He said at a time when Ghana faced acute dollar shortages and was constrained by an IMF programme that limited direct dollar intervention to $80 million, the country under Dr. Bawumia introduced two major policy instruments; the Domestic Gold Purchase Programme and the Gold-for-Oil policy to salvage the situation.
“The results were tangible. Gold reserves rose from 8 tons to over 31 tons. Gross International Reserves hit over $9 billion for the first time in the history of the country,” he wrote.
He noted that the reserve build-up exceeded IMF targets by ending of 2024, creating the buffer that allowed the cap to be lifted effectively in 2025.
Dr. Boako argued that Dr. Bawumia has settled the old debate on gold, proving that “gold is not a relic, it is infrastructure.”
He explained that the doctrine is not a return to the rigid gold standard but a hybrid built on three principles: Flexibility Over Fixity, Digitization and Transparency, and Development-First Design.
He said the model uses gold as a backing instrument and liquidity buffer –a 5-15% tranche of reserves –while preserving floating rates and independent monetary policy.
“What is needed now is fiscal discipline,” Dr. Boako added, stating that if the gold-backed reserves are combined with zero tolerance for unbudgeted expenditure and strict adherence to the Fiscal Responsibility Act, Ghana can credibly exit the boom-bust-IMF cycle for good.
He said the doctrine is particularly urgent due to three global shifts – de-risking of reserves amid sanctions, the need to stabilize commodity trade, and anchoring monetary innovation as central banks explore digital currencies.
Bawumia’s gold-backed policy built on flexibility and digitalisation – Boako
