Dr. Mahamudu Bawumia, Ghana’s Vice President, has consistently addressed the issue of the cedi’s depreciation with a passionate and proactive stance. His speeches on this topic reflect a deep concern for the country’s economic stability and a commitment to finding sustainable solutions.
From his time as a deputy governor of the Bank of Ghana to his current role in government, Dr. Bawumia has tackled the complexities of currency depreciation with a blend of technical insight and practical recommendations. Here are four significant occasions when Dr. Bawumia spoke passionately about the cedi’s depreciation, offering insights into his strategies and the broader economic implications for Ghana.
1. Depreciation of the Cedi Lower Under NPP – Bawumia in 2024
In a revealing interview with AfricaWatch Magazine in 2024, Dr. Bawumia emphasized the cedi’s resilience under the President Akufo-Addo administration. He highlighted the effective management of the cedi’s value despite global economic challenges. Dr. Bawumia contrasted this with the previous NDC administration, stating, “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.” He cited data showing that between 2009-2016, the cedi depreciated by 71.1%, while between 2017-2023, it depreciated by 64.6%. “The depreciation of the cedi has been lower under our government, notwithstanding the severe global shocks we have endured. That is the basic truth,” he concluded.
2. Mahama Does Not ‘Understand’ Cedi Depreciation – Bawumia in 2018
In 2018, Dr. Bawumia responded to former President John Dramani Mahama’s critique with a pointed rebuttal. Accusing Mahama of having limited knowledge on the cedi depreciation issue, he remarked, “I understand the difficulty of the former President in appreciating the currency depreciation debate. I would try to simplify the explanation for him.” He asserted that the cedi’s depreciation against the US dollar was among the lowest in the first year of any government since 1992, underscoring the robustness of the data supporting his claim.
3. Economic Mismanagement Cause of Cedi Depreciation, Not Elections – Bawumia in 2012
Back in 2012, as the NPP’s running mate, Dr. Bawumia dismissed the NDC government’s ‘frivolous excuses’ for the cedi’s rapid depreciation. He argued that the falling value of the cedi was due to the government’s incompetent economic management, which was eroding confidence in the local currency. He provided a historical comparison: “In 2000, which was the last year of the previous NDC government, an election year, the cedi depreciated by about 50%. In 2004, under the NPP, which was also an election year, the cedi depreciated by only 2.2%. In 2008, with record high crude oil prices and the economy under severe pressure from external economic forces, the currency fell by 20%.”
4. Ghana Will Save $4.8bn Annually in Forex from the Gold-for-Oil Barter – Dr. Bawumia in 2023
In 2023, at the inauguration of the ultramodern new head office for the Bulk Oil Storage and Transportation, Dr. Bawumia announced the gold-for-oil programme, which he projected would save Ghana $4.8 billion annually. He explained, “The savings in foreign exchange, when we do this, will be an annual savings of $4.8 billion every year. This means the oil importing companies will not be going to the Bank of Ghana looking for $4.8 billion to buy oil.” This initiative was part of his broader strategy to stabilize the cedi and reduce the nation’s dependence on foreign exchange reserves.
Through these significant moments, Dr. Bawumia has consistently demonstrated his dedication to stabilizing Ghana’s currency and improving the country’s economic resilience. His blend of technical insight, historical context, and innovative solutions reflects a comprehensive approach to tackling the challenges of cedi depreciation.
