Dr. Mahamudu Bawumia, the Vice President and NPP flagbearer, has announced plans to stabilize the Ghanaian cedi through an expanded gold purchase program if elected.
At the NPP’s manifesto launch, Dr. Bawumia highlighted two key policies that helped stabilize the economy during recent crises: the Bank of Ghana’s domestic gold purchase program and the Gold For Oil (G4O) program. He stated, “I am happy to say that the two policies that helped rescue the economy from catastrophe were the Bank of Ghana’s domestic gold purchase program and the Gold For Oil (G4O) program. The pilot has worked for several companies, including those needing forex to repatriate profits. We have found a solution to the profit repatriation problem without destabilizing our local currency. This also reassures foreign investors in our country.”
Dr. Bawumia emphasized that the success of these programs represents a significant step in addressing the long-standing foreign exchange issues that have contributed to inflation and macroeconomic instability. “From the success of the pilot scheme, we can confidently say we have found a solution to the age-old foreign exchange problem,” he added.
He detailed the domestic gold purchase program (DGPP), which involves the Bank of Ghana buying locally produced gold with cedis to boost foreign exchange reserves. “Gold purchases from this program alone have amounted to $5 billion in recent years. With Ghana’s unexplored gold reserves estimated at 5 billion ounces, valued at $10 trillion today, this program has substantial potential,” he said.
Dr. Bawumia pledged to enhance the gold purchase program to meet all major forex demands. “If a company needs dollars, we will exchange their cedis for gold and provide them with dollars. This approach will align demand with supply and provide the stability our local currency has been missing,” he concluded.
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