Dr. Mahamudu Bawumia

Flag bearer of the governing New Patriotic Party (NPP), Dr. Mahamadu Bawumia has disclosed that the surest way to prevent the cedi from depreciation is to back it up with Gold.

“The goal is that we are going to back our currency with gold… because it is very easy for us to do so.”

“If you keep having the gold reserves, that gold gives a lot of stability in the exchange market. Right now, we don’t have an anchor to hold the currency but if we back it with gold it will be very stable,” he added

The cedi has been on a decline against major trading currencies over the past months selling currently at about 15 cedis to the US dollar.

Dr. Bawumia said this during his ‘Bold Solutions for the Future’ stakeholder engagement with the Trades Union Congress.

Addressing the gathering, Dr. Bawumia noted that the move will also ensure a prudent management of Ghana’s mineral resources.

Financial Analysts have predicted the depreciation can get worse with the cedi selling at 20 cedis by the end of the year if the status quo remains.

The Governor of the Bank of Ghana, Dr. Ernest Addison at the Central Bank’s 118th Monetary Policy Committee Press Conference in Accra on Monday noted the bank has taken note of the challenges with the cedi and has thus deployed some mechanisms to arrest the depreciation of the local currency.

In line with this, Dr. Addison says all foreign exchange bureaus advertising rates outside their premises and on social media platforms must immediately desist from the practice.

The President of Ghana National Chamber of Commerce and Industry Dr. Clement Osei Amoako wants the government to organize an emergency national dialogue to find a lasting solution to the canker.

The Chamber laments that the erosion of its working capital is forcing many of its members to close their businesses.

Source: Ghana/Starrfm.com.gh/103.5FM/Benjamin Sackey