Dr. Mahamudu Bawumia, the 2024 presidential candidate for the New Patriotic Party (NPP), has announced plans to adopt a new strategy to stabilize Ghana’s economy if elected. His proposal comes in response to the ongoing depreciation of the cedi against major currencies.
Currently, the cedi trades at 15 cedis to the US dollar and has also depreciated significantly against the Euro and British Pound. This depreciation has raised concerns among the business community regarding the impact on their transactions.
Dr. Bawumia shared his strategy during a ‘Bold Solutions for the Future’ stakeholder engagement with labor union leaders. He identified the lack of a stable anchor for the cedi as a primary issue: “Right now, we don’t have an anchor to hold the currency, but if we back it with gold it will be very stable.”
He elaborated on his plan, stating, “My goal is that we are going to back our currency with gold… because it is very easy for us to do so.” Dr. Bawumia believes that maintaining gold reserves would provide the cedi with much-needed stability in the exchange market: “If you keep having the gold reserves, that gold gives a lot of stability in the exchange market.”
By backing the cedi with gold, Dr. Bawumia aims to provide a robust solution to the currency’s volatility and ensure economic stability for Ghana.
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