Tano North MP, Gideon Boako, says the Bawumia Doctrine of monetary stability rests on three key principles — flexibility, digitalisation and the strategic use of gold as a reserve and liquidity instrument.
Dr Boako said the framework developed under former Vice President Dr Mahamudu Bawumia should not be interpreted as a return to the rigid gold standard of the 20th century.
Instead, he described it as a hybrid model that uses gold to strengthen reserves and provide a liquidity buffer while preserving floating exchange rates and independent monetary policy.
“Classical gold standards failed because they fixed exchange rates to a finite metal stock,” Dr Boako said.
“Bawumia’s model uses gold as a backing instrument and liquidity buffer while preserving floating rates and independent monetary policy. Credibility without handcuffs.”
He said digitalisation forms another important pillar of the doctrine because a modern gold framework must be transparent, auditable and capable of independently verifying transactions and underlying assets.
According to him, technology can help create the level of trust required to make gold-backed monetary systems effective in the modern economy.
Dr Boako further said the approach has a development dimension, particularly for commodity-producing countries.
“For commodity-producing nations across Africa, Latin America and Asia, this is a path to monetise natural wealth without Dutch disease,” he said, adding that retaining more value from domestic resources could reduce external borrowing pressures and provide a hedge against excessive dependence on any single reserve currency.
