Chairman of Parliament’s Finance Committee, Isaac Adongo, has refuted claims by the Minority in Parliament that the recent surge of the cedi on the forex market is as a result of some resilient foundation laid by the Akufo-Addo/Bawumia administration.
According to Adongo, the New Patriotic Party (NPP) and the Minority’s claims about being the brains behind the cedi’s stability “are not only disingenuous but lack substance and fall flat in the face of reality and existing facts.”
The Member of Parliament for Bolgatanga Central has insisted that the appreciation of the cedi has been occasioned by the prudent fiscal policies put in place by the NDC government, coupled with the efficient handling of forex liquidity inflow, which has seen a rise as a result of investor confidence.
His comments follow the Minority’s claim that the Akufo-Addo/Bawumia administration built a strong macroeconomic foundation to stabilise the Ghana cedi, according to a statement issued by the Ranking Member on the Committee, Dr. Mohammed Amin Adam, on Wednesday, May 21, 2025.
In a response issued by Mr Adongo on Thursday, May 22, 2025, he questioned the logic behind the cedi’s poor performance against the dollar and other major foreign currencies, amid the NPP’s claim that they had built a stronger foundation to warrant the local currency’s recent robustness on the forex market.
“In all of this, two key questions worth asking Dr Bawumia or Dr Amin even before we go into the details is ‘If reserves alone can work this magic, why was the cedi hovering around GHS17 to one US dollar in 2024 when the Bank of Ghana had the strong gold reserves they alluded to at the time Dr Bawumia was the Head of the Economic Management Team and Dr Amin the Finance Minister?
“Also, what has suddenly happened to the infamous external factors (Russia-Ukraine war, still going one and geopolitical tensions, now worse than before) in the macroeconomic mix?” Adongo quizzed.
In the Minority’s statement, Amin Adam indicated that President Mahama’s recent admission that the cedi’s appreciation is linked to the country’s $10.6 billion foreign reserves confirms the NDC government has not introduced any new policy innovations to warrant the feat but rather the benefits from reserves accumulated by the NPP.
“A substantial $8.98 billion of the reserves were inherited from the NPP government,” Dr. Amin Adam said, adding that the NPP increased gold reserves from 8.78 tonnes in May 2023 to 30.53 tonnes by December 2024, setting a strong anchor for the currency.
He went on to say that the government has underperformed in building reserves and accumulating gold, criticising the administration for adding only US$1.6 billion to the foreign exchange reserves since January 2025, despite the favourable economic conditions.
“Macroeconomic discipline must be matched with transparency and reform—not rhetoric,” Dr. Amin Adam said, urging the government to focus on sustaining gains through prudent policies and institutional continuity.
Prior to the statement from the Minority, the Vice President, Dr. Mahamudu Bawumia, had indicated that the NDC cannot boast of a single policy it has introduced to stabilise the cedi, stating that the credit should be given to the previous NPP government for policies it introduced to bring the cedi to this level.
Find below Adongo’s full response to the Minority:
PRESS STATEMENT BY THE CHAIRMAN OF THE FINANCE COMMITTEE IN PARLIAMENT AND MEMBER OF PARLIAMENT FOR BOLGATANGA CENTRAL, HON ISAAC ADONGO
GHANA’S ECONOMIC STABILITY FRUITS OF JOHN MAHAMA’S RESET AGENDA AND HIS PRUDENT MACROECONOMIC-LED MANAGEMENT
On Wednesday, May 21, the former Finance Minister and Ranking Member of the Finance Committee of Parliament, Dr Mohammed Amin Adam, issued a statement in which he sought to claim credit for the current macroeconomic stability being enjoyed by Ghanaians. Typical of his NPP party and in sync with their 2024 Flagbearer, Dr Muhamudu Bawumia, the Ranking Member said his party built vast gold reserves prior to exiting power in December 2024 which are now helping to stabilize the currency and anchor inflation.
Earlier, Dr Bawumia said the same thing in his typical attempt to claim credit for anything good and dissociate from anything bad. (Recall his abandonment of the Akufo-Addo-led government’s policies on taxes, debt restructuring, surging inflation, corruption, arrogance of power and lack of ministerial reshuffle earlier this year and his continuous claiming of credit for so-called digital projects). In all of this, two key questions worth asking Dr Bawumia or Dr Amin even before we go into the details is ‘If reserves alone can work this magic, why was the cedi hovering around GHS17 to one US dollar in 2024 when the Bank of Ghana had the strong gold reserves they alluded to at the time Dr Bawumia was the Head of the Economic Management Team and Dr Amin the Finance Minister? Also, what has suddenly happened to the infamous external factors (Russia-Ukraine war, still going one and geopolitical tensions, now worse than before) in the macroeconomic mix?
Their attempt to associate with the good, though typical of them, is not only disingenuous but lacks legs and falls flat in the face of reality and existing facts. The following facts speak to this:
- Macroeconomic stability is not the result of a single factor:The current positive economic indicators we are witnessing are the direct result of prudent macroeconomic management of the fiscals by the Ministry of Finance and the stern monetary stance adopted by the Bank of Ghana. While we acknowledge the contribution of our international reserves, it is important to clarify that the positive outcomes stem from a comprehensive economic strategy rather than any single inherited factor.
The stability of the cedi reflects President Mahama’s government’s commitment to fiscal discipline, effective monetary policy implementation, and strategic economic interventions that engender confidence in the government and the economy. The Bank of Ghana’s monetary policy stance has been instrumental in achieving this stability through carefully calibrated interest rate decisions and liquidity management. The GoldBod program represents an innovative approach to currency management, leveraging Ghana’s natural resources to support our currency. This strategic initiative has been implemented with careful attention to market dynamics and has proven effective in achieving currency stability.
The declining inflation rate, though gradual, demonstrates the effectiveness of our comprehensive anti-inflationary measures. These include not only monetary tightening but also strategic interventions in food supply chains and energy markets to address cost-push factors. It is also the result of growing investor confidence in the leadership of the John Mahama-led government, resulting in investors committing more funding to the economy. This is opposed to high rates of divestment of portfolios that we saw under the Akufo-Addo-Bawumia administration, which increased the pressure on the cedi.
It is instructive to note that interest rates are responding to these improved fundamentals, creating a more conducive environment for business growth and investment. This is not merely coincidental but the result of deliberate policy actions designed to create a stable macroeconomic environment.
- Reduced government domestic borrowing easing crowding-out effects:As Dr Bawumia and Amin would know, strong reserve build-up is nothing unless it is totally linked with prudent fiscal management anchored by transparency and discipline. Since President Maham took office on January 7, 2025, fiscal consolidation efforts have taken center stage, reducing the government’s reliance on domestic borrowing and freeing up credit for the private sector. This has eased the crowding-out effect that previously drove up interest rates as government and private sector competed for limited domestic financial resources. Indeed, international media had accused the government in 2024 of undertaking shady borrowing’s where rates unfairly determined, erasing the uniformity rule required by investors in the domestic debt market. These have become a thing of the past, strengthening confidence and certainty. Also, the government has demonstrated commitment to structural economic reforms, including in the energy sector, public financial management, and state-owned enterprises. The launch of the Code of Conduct for appointees is a huge confidence booster in the economy, helping to assure investors that backdoor tactics will not be entertained by the President in their conduct with appointees. These consistent policy initiations and implementation of the reforms have built credibility with both domestic and international stakeholders.
- Improved export performance, particularly in gold and cocoa sectorsGhana’s traditional export sectors have shown remarkable resilience and growth. Gold exports have benefited from elevated global prices and increased production volumes, while cocoa exports have been bolstered by improved yields and favorable international market conditions. The speedy and prudent rollout of the GoldBod has strengthen confident in the government’s ability to curb the gold smuggling menace, resulting in more miners passing their produce through the formal channels and increasing Ghana’s export revenues. These have increased foreign exchange inflows, supporting the cedi’s stability.
- Enhanced transparency in foreign exchange market operationsThe Bank of Ghana has significantly improved the transparency of its foreign exchange operations through regular publications of intervention data, forward guidance on policy intentions, and clear communication with market participants. The bank’s Monetary Policy Committee has also injected more credibility, transparency and dynamism into its operations through the pre-meeting conference and the publication of voting decisions by members. These are novel but global standard, further anchoring investor confidence in a government that is fiscally prudent and citizens-focused. These have reduced uncertainty and speculation in the forex market, contributing to more orderly trading conditions.
- Improved sovereign risk profile following economic stabilization: Following the prudent management of the economy, the IMF, World Bank, and rating agencies have acknowledged Ghana’s progress in economic management. These positive external validations have reinforced market confidence in the country’s economic trajectory and policy framework. On May 9, S&P Global Ratings raised its long- and short-term foreign currency sovereign credit ratings on Ghana to ‘CCC+/C’ from ‘SD/SD’ – the junk status that Akufo-Addo and Bawumia, with my brother, Dr Amin Adam as Finance Minister left us. At the same time, the international ratings agency affirmed its ‘CCC+’ issue ratings on Ghana’s debt and further affirmed their ‘CCC+/C’ long- and short-term local currency ratings on Ghana, citing growing confidence in the economy and its managers, declining debt metrics and a clear path to debt sustainability anchored on monetary and fiscal prudence. This is unprecedented and has reduced the risk premium demanded on government treasuries, allowing for lower borrowing costs that eventually feed into the broader economy.
- Gradual normalization of yield curve and easing inflation:The result of all these efforts are the unprecedented stability in the cedi and the normalization of the yield curve, helping anchor the disinflation on a sustainable path. These are beginning to translate into lower prices for the ordinary Ghanaian just as President Mahama promised them during his campaigning.
- Conclusion: While I do not expect the NPP to praise the government, it is untenable to have them try to claim credit for the success. We all still remember how they tried very hard to associate the surging inflation, falling cedi and ballooning debts to so-called external factors – Russia-Ukraine war, COVID-19 and the general geopolitics. Instructively, these same factors are in full swing, if not elevated yet the economic indices are trending downwards. This is clear case of leadership is cause and all other things are effects. President Mahama is clear in what he wants and he is delivering that to the Ghanaian people, whom he has a pledge with. He will not be distracted by the distractions from people whose records are haircuts, obnoxious taxes and neck-breaking inflation rates.
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