In a significant acknowledgment of economic innovation, Dr. Mahamudu Bawumia, the former Vice President of Ghana, has received high praise for his pivotal role in establishing the Gold-for-Reserves program aimed at bolstering the country’s financial stability.
Amidst a challenging global economic landscape that severely impacted Ghana, Bawumia proposed the Domestic Gold Purchase Programme, a strategic initiative designed to utilize gold reserves to acquire foreign currency. This approach was intended to reduce reliance on excessive borrowing and to stabilize the national currency, the Cedi.
The program has shown remarkable results since its inception, with substantial improvements in the Cedi’s value. Analysts noted that the Cedi, which once plummeted to nearly 17 Cedis per US dollar, subsequently appreciated to about 14 Cedis, coinciding with a decrease in fuel prices. Such changes were attributed to reduced pressures on the foreign exchange market.
Senyo Hosi, a respected economic policy analyst, recently discussed the program’s benefits on Joy FM’s Newsfile, asserting that Bawumia’s foresight in initiating this plan deserves commendation. “I commend Bawumia for being the architect of the Gold-for-Reserves program,” Hosi stated, emphasizing the significant impact of the policy on the nation’s economy.
Prior to the implementation of this initiative, Ghana’s gold reserves stood at approximately 8 tonnes. However, by January 2025, following a change in government, these reserves had surged to over 30 tonnes, showcasing the effectiveness of the program.
In addition to Hosi’s remarks, Dr. Johnson Asiama, Governor of the Bank of Ghana, has also praised the Gold-for-Reserves initiative, highlighting its integral role in enhancing Ghana’s gold reserves and positively influencing the stability of the local currency.
The discussion surrounding the impact of Bawumia’s program continues to evolve as stakeholders assess its long-term benefits for Ghana’s economy.
