2024 elections: Bawumia vows to stabilize cedi with gold if elected

Bawumia

The flagbearer of the ruling New Patriotic Party (NPP), Dr. Mahamudu Bawumia, has pledged to stabilize the local currency if elected president in the December 7 polls.

This promise comes amid ongoing concerns about the volatility of the Ghanaian Cedi and its impact on the economy.

Speaking at a meeting with Organised Labour, Dr. Bawumia outlined his innovative plan to back the Cedi with the country’s gold reserves.

He believes this strategy will ensure long-term stability for the currency. "Ultimately, my goal is that we are going to back our currency with gold, and that is where I want us to go, increasingly backing our currency with gold. Because it is very easy for us to do so if you keep having the gold reserves," he stated.

Dr. Bawumia highlighted the lack of a current anchor for the Cedi, which contributes to its instability. He explained that backing the currency with gold would provide the necessary support to maintain its value. "And that will keep a lot of stability in the exchange market. Because 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.

According to Dr. Bawumia, the value of gold is relatively stable compared to other commodities, making it an ideal benchmark for the Cedi. "Its value ultimately will be reflected by the value of gold, which is very stable," he noted. This stability, he argued, would help shield the Cedi from speculative attacks and external economic shocks.

The proposal to back the Cedi with gold is seen as a bold move, reflecting Dr. Bawumia's background as an economist and his commitment to innovative economic solutions. As the December elections approach, this promise is expected to be a key part of his campaign, appealing to voters who are eager for effective measures to stabilize the national currency and improve the overall economic outlook.