The US Dollar Itself Is On The Decline Globally – Bawumia On Cedi Appreciation

Former Vice President and 2024 NPP presidential candidate, Dr. Mahamudu Bawumia, has attributed the recent appreciation of the Ghanaian cedi to the global weakening of the US dollar, rather than any policy interventions by the opposition National Democratic Congress (NDC).

Speaking at an engagement with the Young Executive Forum (YEF) in London, Dr. Bawumia emphasized that the decline of the dollar is not unique to Ghana. “The US dollar itself is on the decline globally, and that has also strengthened currencies. If you go to Zambia, for example, the Kwacha has gained a lot of ground also because of the US dollar’s declining value,” he noted.

He argued that the NDC should not be credited for the cedi’s recent stability, pointing out that the current administration has yet to implement any significant policy. “If you ask the NDC to name a single policy they have implemented that has led to the cedi’s appreciation, they cannot. They passed their budget only in March and have barely awarded or paid for any contracts.”

Dr. Bawumia also highlighted the impact of government spending on currency pressure, accusing the NDC of under-spending. “They’re not paying IPPs, not paying contractors, and that’s contributing to reduced pressure on the cedi — but also causing issues like intensified dumsor.”

He further referenced the NPP’s foresight in leveraging Ghana’s gold reserves to strengthen the economy. “We had anticipated the impact of gold. Ghana, being Africa’s largest gold producer, had only 8.7 tons in reserves, compared to 8,000 tons for the US. Gold provides a more direct route to backing the currency — you don’t need to export it to earn foreign exchange. You can simply pay for it in cedis.”

‘NDC has no policy behind cedi gains’ – Bawumia dismisses credit for currency stabilityhttps://t.co/zVgDkKNRGg #PrimeMorning

— Joy Prime (@JoyPrimeTV) May 20, 2025

Source: Nkonkonsa.com