Monday, 17 June

We’ll back the Cedi with gold to make it more stable if I become President – Bawumia

Politics
Dr. Bawumia explained that the current lack of an anchor for the Cedi contributes to its volatility

The flagbearer of the New Patriotic Party (NPP), Dr. Mahamudu Bawumia has pledged to stabilise the local currency by backing the Cedi with Ghana's gold reserves if elected president in the upcoming December 7 polls.

Addressing a meeting with Organised Labour, Dr. Bawumia emphasised the importance of anchoring the Cedi to gold to ensure its stability in the exchange market.

“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,” he stated.

Dr. Bawumia explained that the current lack of an anchor for the Cedi contributes to its volatility. He highlighted the potential benefits of using gold reserves to support the currency.

“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,” Dr. Bawumia stated.

Source: classfmonline.com/Elikem Adiku