Vice President Dr. Mahamudu Bawumia, who is also the flagbearer of the New Patriotic Party (NPP), has announced plans to stabilize the Ghanaian cedi if the NPP wins the upcoming general elections. Speaking at a recent event, Dr. Bawumia highlighted the effectiveness of two key policies—the Bank of Ghana's domestic gold purchase program and the Gold for Oil (G4O) initiative—in rescuing the economy from a recent crisis. He expressed confidence that these policies would be pivotal in ensuring the cedi’s stability under the next NPP administration.
Dr. Bawumia explained that the domestic gold purchase program, implemented by the Bank of Ghana, played a significant role in shielding the economy from severe impacts during the recent economic downturn. The program, which involves the central bank purchasing gold domestically, helped bolster the country’s foreign reserves, thereby providing a buffer against external economic shocks.
In addition to the domestic gold purchase program, the Gold for Oil (G4O) initiative was also crucial in stabilizing the economy. The G4O program allows Ghana to pay for imported oil with gold rather than relying on foreign currency reserves, thus reducing pressure on the cedi. Dr. Bawumia noted that the program has been successfully piloted with several companies, some of which initially sought to repatriate profits in foreign currency. By providing a solution to the profit repatriation problem without destabilizing the local currency, the G4O initiative has contributed to easing the strain on Ghana's foreign exchange reserves.
The Vice President emphasized that these policies would be central to the NPP’s economic strategy moving forward. He assured that, under his leadership, the next NPP government would expand and strengthen these initiatives to ensure long-term stability for the cedi.
As the 2024 general elections approach, Dr. Bawumia’s announcement serves as a key component of the NPP's broader economic plan. His focus on stabilizing the cedi through innovative measures underscores the party’s commitment to maintaining economic stability in the face of global challenges.
