Vice President Dr. Mahamudu Bawumia has revealed plans to anchor the Cedi’s value to gold, aiming to stabilize the local currency and address ongoing forex challenges. This initiative follows the success of the Bank of Ghana’s domestic gold purchase program, which has boosted the country’s gold reserves by acquiring 65.4 tons valued at $5 billion.
During the inauguration of the Royal Ghana Gold Refinery in Accra, Dr. Bawumia outlined the proposed foreign exchange policy, which would ensure long-term stability for the Cedi by leveraging gold as a solid anchor.
He suggested a new foreign exchange management framework where significant gold demands would be routed through the Bank of Ghana’s gold purchase program. This approach would help balance demand and supply, preventing fluctuations in the exchange rate and maintaining stability.
Dr. Bawumia emphasized that anchoring the Cedi to gold would provide a reliable foundation for the currency, allowing Ghana to build stronger forex reserves and support the country’s broader economic needs. This strategy, he believes, will ensure long-term exchange rate stability, helping Ghana move forward economically.
As of July 2024, the Cedi has depreciated by 19.6% against the dollar, according to the Bank of Ghana’s economic and financial data.