The 2024 flag bearer for the opposition New Patriotic Party (NPP) and former Vice President, Dr. Mahamudu Bawumia, has dismissed claims that the appreciation of the Ghana cedi is due to policies introduced by the current government.
He says the governing of the National Democratic Congress (NDC) cannot point to any policy they’ve introduced that has contributed to the stability of the cedi, indicating that initiatives by the previous administration are what have accounted for the cedi’s rise.
According to Dr. Bawumia, the timing of the budget’s passage in March and the lack of significant contractor payments undermine any claims that the NDC government’s policies are behind the cedi’s recent gains.
Dr. Bawumia, speaking during his ‘Thank You’ tour in the UK at an interaction with the Young Executive Forum (YEF) in London, stated that attributing the cedi’s stability to the NDC is inaccurate.
“If you are to the NDC to point out exactly what policy they have implemented that has resulted in the appreciation of the cedi. They cannot tell you one.
“They only passed their budget in March. They’ve not even issued any contracts or paid for anything. So you cannot ascribe what is happening to the currency to a policy they have implemented,” he stated.
The former Deputy Governor of the Bank of Ghana (BoG) also noted that the weakening of the US dollar globally, coupled with a slowdown in domestic government spending, could partly explain the cedi’s appreciation.
“If you go to Zambia, for example, the Kwacha has gained a lot of ground also because you have the US dollar declining in value.
“They are not paying Independent Power Producers (IPPs). That’s why the dumsor is so acute. They are not paying contractors. When you are not spending, there is less pressure on your currency,” he stated.
Bawumia further intimated that proper economic management by the current administration would help stabilize the cedi, given the foundation laid by the measures they put in place before leaving office.
“What we have put in place should help us maintain stability in the currency, but we’ll see how they manage it going down the road,” he said.
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