Stabilise the cedi with gold : Bawumia promises if elected

Dr. Mahamudu Bawumia, the flagbearer of the New Patriotic Party (NPP), has declared a strategic initiative to stabilise the cedi with gold reserves if elected president in the general elections on December 7, 2024.

This policy suggestion, he said, intends to address the cedi’s persistent volatility, boost investor confidence, and improve Ghana’s overall economic stability which he would stabilise the cedi with gold.

The Ghanaian cedi has depreciated significantly in recent years, affecting inflation rates and reducing citizens’ purchasing power.

This volatility is mostly caused by external variables such as swings in global commodity prices, the strength of the US dollar, and Ghana’s trade deficits.

Stabilise the cedi with gold initiative

To address these difficulties, Dr. Bawumia’s proposal aims to capitalize on one of Ghana’s most abundant natural resources—gold.

Dr. Bawumia, speaking at a meeting with Organised Labour, stated that there is no anchor to hold the cedi other than gold.

Goal by Dr Bawumia to stabilise the cedi with gold

“Ultimately, my goal is that we are going to back our currency with gold and that is where I want us to go, increasingly backing our currency with gold. Because it is very easy for us to do so if you keep having the gold reserves.

“And that will keep a lot of stability in the exchange market. Because right now we don’t have an anchor to hold the currency, but if we back it with gold, it will be very stable, because its value ultimately will be reflected by the value of gold, which is very stable,” he said.

Ghana is one of the world’s leading gold producers, and the mining industry is a key component of the economy.

The government hopes to strengthen the underpinning for the cedi by using the country’s gold reserves, lowering its sensitivity to foreign shocks.

Ghana is set to go to the polls on December 7th to elect a new president as well as Members of Parliament for various constituencies within the country and Bawumia has promised to stabilise the cedi with gold if elected as president.