The Ghanaian Cedi has recently experienced a welcome appreciation, offering a respite to an economy often plagued by currency instability. This positive shift, however, has ignited a fiery debate between leading political figures, specifically Sammy Gyamfi, CEO of the Ghana Gold Board (GoldBod), and former Vice President Dr. Mahamudu Bawumia. At the heart of the contention lies the attribution of this Cedi appreciation: is it a result of deliberate policy interventions, or merely a market correction influenced by other factors?

Sammy Gyamfi argues forcefully that the Cedi’s gains are directly linked to strategic policies implemented by the current administration. Dr. Bawumia, on the other hand, has cast doubt on the notion that any specific NDC policies are responsible for the Cedi’s improved performance, suggesting other market forces might be at play. This difference in perspective highlights the complex interplay between economic management, political narrative, and public perception in Ghana.

The discourse around Cedi appreciation is not just academic; it directly impacts the lives of ordinary Ghanaians, influencing the prices of goods, the cost of doing business, and the overall economic outlook.

Bawumia’s Claims vs. Gyamfi’s Rebuttal

Dr. Bawumia has publicly questioned whether the NDC government implemented any deliberate policies to intentionally cause the Cedi appreciation. While his specific arguments weren’t outlined in source material, he might suggest that external factors such as fluctuations in commodity prices or changes in global financial conditions are the primary drivers. Bawumia could also argue that any perceived gains are temporary and unsustainable without fundamental structural reforms.

Sammy Gyamfi, in a strong rebuttal, has asserted that the recent Cedi appreciation is indeed a direct consequence of well-defined policy measures. According to Gyamfi, three major policy interventions have contributed to the 16.7% appreciation of the Cedi between January and May 2025. These measures, he contends, demonstrate a proactive approach to economic management and a commitment to stabilizing the Ghanaian currency.

NDC Policy Intervention 1: Monetary Policy Tightening

One key pillar of the NDC’s strategy, according to Gyamfi, has been the tightening of monetary policy by the Bank of Ghana. In March 2025, the Bank of Ghana increased the Monetary Policy Rate (MPR) from 27% to 28%. This move was coupled with aggressive liquidity sterilization through Open Market Operations, designed to mop up excess liquidity from the financial system.

Gyamfi has stated that these measures were explicitly aimed at taming inflation and stabilizing the currency. By increasing the MPR, the Bank of Ghana sought to make the Cedi more attractive to investors, thereby increasing demand and supporting its value. Aggressive open market operations further reinforce this by reducing the amount of Cedi in circulation.

Higher interest rates typically attract foreign investment, increasing demand for the local currency. This increased demand, coupled with reduced Cedi supply from open market operations, puts upward pressure on the exchange rate, leading to Cedi appreciation.

NDC Policy Intervention 2: Fiscal Consolidation

Beyond monetary policy, Sammy Gyamfi highlights the role of fiscal consolidation in bolstering the Cedi’s value. He points to enhanced fiscal discipline and prudent public finance management by the Ministry of Finance as a critical factor in restoring investor confidence.

According to Gyamfi, the government’s commitment to responsible spending and debt management has signaled to investors that Ghana is a stable and reliable destination for investment. He emphasizes the crucial role of investor confidence in stabilizing the macroeconomic environment. Increased investor confidence typically translates into higher demand for Ghanaian assets, further contributing to Cedi appreciation.

NDC Policy Intervention 3: Robust Forex Inflows

A third factor contributing to the Cedi’s appreciation, according to Gyamfi, is the surge in foreign exchange inflows. He cites unprecedented gold purchases and exports through the Precious Minerals Marketing Company (PMMC) and GoldBod, along with enhanced forex inflows from cocoa exports and remittances.

Gyamfi states that this favorable development has significantly boosted the Cedi’s value. Increased forex inflows provide a greater supply of foreign currency in the market, increasing the relative value of the Cedi. This dynamic directly contributes to Cedi appreciation against major currencies.

Gyamfi’s Challenge to Bawumia: Gold Reserves vs. Forex Liquidity

In a direct challenge to Dr. Bawumia, Sammy Gyamfi poses a fundamental question regarding economic priorities: “What is more important: accumulating physical gold reserves with a dollar-to-cedi exchange rate of GHS16, or accumulating adequate forex liquidity through gold exports with an exchange rate of GHS12.2?”

This question highlights the trade-offs between building long-term national assets (gold reserves) and managing short-term currency stability (forex liquidity). Gyamfi’s implicit argument is that prioritizing forex liquidity through gold exports has proven more effective in stabilizing the Cedi and benefiting the Ghanaian economy.

In conclusion, Sammy Gyamfi asserts that the recent Cedi appreciation is not a random occurrence but the tangible outcome of coordinated efforts and decisive policy actions undertaken by the NDC administration. These policies, encompassing monetary tightening, fiscal consolidation, and enhanced forex inflows, have collectively contributed to strengthening the Ghanaian currency.

The debate between Gyamfi and Bawumia underscores the ongoing discussion about the most effective strategies for managing Ghana’s economy and ensuring currency stability. Further analysis and comprehensive data are needed to fully understand the multifaceted factors influencing the Cedi’s performance and to inform future policy decisions.