File photo representing Ghana’s gold for oil programme
President John Dramani Mahama has acknowledged the impact of the nation’s boosted reserves on the recent stability of the cedi against the US Dollar.
The cedi traded at GH¢14.4 to a dollar at the beginning of the year but it has made a dramatic rebound in the month of May, trading at GH¢12.4 to a dollar this week.
Speaking at the opening of the Ghana–EU Business Forum in Accra, President John Mahama attributed the rebound to the gross international reserves which the previous Akufo-Addo government significantly bequeathed to the present administration.
At the end of 2024 before the President assumed office in January this year, Ghana’s reserves stood at $8.98 billion and the President attributed the gains to the overall improved reserves which now stands at $10.6 billion.
“Our gross international reserves have improved further from $8.98 billion in December 2024 to $10.6 billion by April 2025,” President Mahama said, adding that the continuous improvement of Ghana’s reserves is a good sign of growing investor confidence and external buffers.
Experts have also attributed Ghana’s improved reserves to the country’s timely gold purchasing programme introduced by former Vice President of Ghana, Dr Mahamudu Bawumia.
The policy allowed the Bank of Ghana to buy gold with cedis to improve Ghana’s gold reserves and use it to import oil products instead of depleting the country’s foreign exchange reserves.
This policy helped the bank to boost its reserves within a short time.
AME
