Bawumia: Cedi depreciation lower under NPP government


Dr. Mahamudu Bawumia, the flagbearer of the New Patriotic Party (NPP), has emphasized that the current performance of the Ghanaian Cedi against the US Dollar demonstrates an improvement compared to its value during the previous National Democratic Congress (NDC) administration.


In an interview with AfricaWatch, Dr. Bawumia highlighted the relative resilience of the Cedi under the leadership of President Akufo-Addo’s government, reaffirming his stance on the management of the currency.


He noted that despite the ongoing global economic challenges, the depreciation of the Cedi has been manageable compared to the NDC’s tenure.


“Why not? We use averages to measure progress in statistics and economics all the time. It is a valid comparison of the management of the exchange rate under our government versus under the NDC government,” Dr. Bawumia asserted.


“The data shows that from 2009-2016, the cedi depreciated cumulatively by 71.1%, and between 2017 and 2023, the cumulative depreciation was 64.6%. So, whether you look at the average or the cumulative, the depreciation of the cedi has been lower under our government, notwithstanding the severe global shocks we have endured. That is the basic truth.”


Furthermore, Dr. Bawumia defended his previous statement regarding the correlation between a weak exchange rate and the strength of a government’s fundamentals, citing global crises such as the Russia-Ukraine war and the COVID-19 pandemic as contributing factors to the current exchange rate challenges.


“Absolutely! It is still true, and I will continue to stand by that statement. We saw that between 2017 and 2021 when the fundamentals in terms of the fiscal deficit, inflation, GDP growth, external balances, and international reserves were fairly strong, the exchange rate was relatively stable,” he explained.


He attributed recent fluctuations in the exchange rate to various factors including the COVID-19 pandemic, geopolitical tensions, and domestic economic challenges, but emphasized that the government’s efforts to strengthen economic fundamentals have contributed to the relative stability of the currency in recent times.


Dr. Bawumia’s remarks underscore the administration’s commitment to addressing currency volatility and fostering a conducive economic environment for sustainable growth and development.

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