Vice President Dr. Mahamudu Bawumia has suggested anchoring the value of the Ghanaian Cedi to gold as part of a new foreign exchange regime aimed at stabilizing the local currency and tackling ongoing forex challenges.
This proposal follows the success of the Bank of Ghana’s domestic gold purchase program, which has significantly bolstered the nation’s gold reserves, with 65.4 tons valued at $5 billion.
Speaking at the inauguration of the Royal Ghana Gold Refinery in Accra, Dr. Bawumia highlighted that this new policy could ensure long-term stability for the Cedi.
He proposed a framework where the Bank of Ghana’s gold reserves would be utilized to meet the country’s forex demands, thereby stabilizing the exchange rate.
According to recent data from the Bank of Ghana, the Cedi has depreciated by 19.6 percent against the US dollar as of July 2024.
