Senior Vice President of policy think tank IMANI Africa, Kofi Bentil, has credited Dr Mahamudu Bawumia’s gold-for-reserve initiative as a key factor in the recent appreciation of the Ghana cedi. 

In a Facebook post on Thursday, 8 May, Mr Bentil explained that while external factors such as United States monetary policy are playing a role, the internal policy choices—particularly those relating to gold reserves- are having a significant impact. 

“The cedi is appreciating because the US government is acting in ways that is devaluing the dollar… but there is more,” he wrote.

Mr Bentil elaborated that both the current and previous governments have contributed to building Ghana’s gold reserves, with recent sales of gold for foreign exchange helping to stabilise the local currency. 

“This government has also added to the gold reserves, BUT a check of the numbers will reveal that most of what was purchased by this government has been sold for forex, which has been pushed into the system and it’s shoring up the cedi,” he stated. 

He further acknowledged that the foundation laid by previous administrations is paying off, and both deserve recognition.

He emphasised that the gold-for-reserve policy was initiated under the former Vice President and current NPP flagbearer, Dr Mahamudu Bawumia, and has fortunately been continued and enhanced under the current administration led by John Mahama. 

“This policy of gold purchase started in the last government and was pushed by DMB, and fortunately has been continued by this government under JM… Both governments deserve praise,” he affirmed, adding that Bawumia’s passion as the originator of the idea must be acknowledged.

In closing, Mr Bentil cautioned against politicising the strengthening of the cedi and urged collaboration across the political divide to sustain the gains. 

“I pray even more that this effort will not be politicised and bastardised, but all brains and efforts from both sides… will be tapped to sustain it,” he urged. 

Reiterating the need for continuity in governance, he concluded, “No government will develop Ghana alone. It will take all governments… working in a chain or baton relay to move us forward. Let’s build… together.”