Vice President of IMANI Africa Kofi Bentil has said that the Cedi is appreciating also because Ghana have gold reserves which were accumulated since the last Akufo-Addo government.
He notes that the Mahama administration has also added to the gold reserves, but a check of the numbers will reveal that most of what was purchased by the Mahama government has been sold for forex which has been pushed into the system and its shoring up the cedi.
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“So the actions of the past and present governments are paying off, This policy of gold purchase started in the last government and was pushed by Dr Mahamudu Bawumia, and fortunately has been continued by this government under John Mahama, and is being enhanced by the GoldBod idea. Both efforts are leading to positive results. Both governments deserve praise,” he wrote on his Facebook page.
He added that “There’s something about the passion of an originator which no one else can emulate. It’s therefore always good to acknowledge originators and even co-opt them in any effort. We get nothing by spurning them, and gain everything by coopting them
“I am so excited that the Cedi is getting stronger but I pray even more that this effort will Not be politicized and bastardized, but all brains and efforts from both sides of the political divide will be tapped to sustain it. Ghana will get very strong if we can do this. I repeat what was said earlier that no government will develop Ghana alone. It will take all governments from both parties working in a chain or baton relay to move us forward. Let’s build… together.”
Recently, the Governor of the Bank of Ghana, Dr Johnson Asiama said that a number of measures had been introduced, which are resulting in stability.
He explained that the BoG is currently implementing some foreign exchange market reforms to shore up the Cedi.
“The stability you are seeing now is not because we are intervening, it is not because we are selling reserves for stability, no. Remember our reserves programmes actually go up by the day, we are building more and more reserves. All that we are doing is strengthening the surge in inflows, a number of foreign exchange market reforms are being implemented,” he said.
He added, “It is the combination of all these factors that you are seeing. So long as we hold that anchor, we will continue to see stability. I made the point earlier that when we say stability, it doesn’t mean the Cedi has to be fixed, it doesn’t mean that the Cedi has to overly appreciate, because that in itself is not good for our export.
“So, in real terms, we are observing the trends, we want to make sure the Cedi is not misaligned with the real terms. It stays within some kind of range that is appreciated, a range that is consistent with macroeconomic stability.”
“All I can tell you at this point is that the days of excessive volatility of the Cedi is certainly coming to an end,” he told Joy News.
