'My ultimate goal is to stabilize the cedi with gold' – Dr. Bawumia

The flagbearer of the New Patriotic Party (NPP), Dr. Mahamudu Bawumia, has expressed his desire to tackle the depreciation of the cedi with long-term solutions.

According to him, his ultimate goal is to stabilize the cedi with gold to further strengthen the local currency and its performance against major trading currencies.

Addressing members of the Organised Labour during a stakeholder meeting, the NPP flagbearer said that gold will serve as a major anchor to shore up the cedi.

“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 we keep having the gold reserves.

“And that will keep 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 because its value ultimately will be reflected by the value of gold, which is very stable,” Dr. Bawumia explained.

The local currency, the Cedi, is experiencing one of its worst declines in decades. It is currently the third-worst performing currency in the world this year, according to Bloomberg.

The instability of the cedi has severely impacted the cost of living and inflationary pressures in Ghana.

MA

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