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Bawumia proposes anchoring Cedi to Gold for long-term stability

Vice President Dr Mahamudu Bawumia has hinted at plans to anchor the value of the Cedi to gold in an effort to cushion the local currency against depreciation and address persistent forex challenges.

This follows the success of the domestic gold purchase programme, under which the Bank of Ghana has acquired 65.4 tons of gold valued at US$5 billion, significantly boosting Ghana’s gold reserves.

Speaking at the inauguration of the Royal Ghana Gold Refinery in Accra on Thursday, Dr Bawumia stated that the new forex exchange policy would ensure the long-term stability of the Cedi.

“I would like to propose a new foreign exchange regime management architecture for Ghana next year in which the value of the cedi with everything we have put in will be anchored to gold. I want us to move our foreign exchange management because we need an anchor and I believe that the best anchor for the Cedi is gold. I want us to anchor the Cedi to gold,” he said.

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According to him, “I am proposing a framework which we will discuss with the central bank, of course, and we will see where. But the framework that I am proposing is very simple. Having looked at all that we have done, all significant demand for gold should be channelled through the Bank of Ghana’s gold purchase programme.”

“If you have GHȼ3 billion and you are looking to buy forex, the Bank of Ghana can take the GHȼ3 billion and buy gold and give you your forex. Demand equals supply, exchange rate doesn’t move,” he added 

The Vice President said, “It is just a simple use of our gold reserves to meet the demands of forex. Once you can anchor the Cedi with gold so that you are able to meet demand then there are so many extra forex reserves to do other things for the country.

“But then you will maintain long-term exchange rate stability, which will be anchored on gold and then we will move forward,” the Vice President said.

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According to the Bank of Ghana’s summary of economic and financial data, the Cedi has depreciated by 19.6 percent against the dollar as of July 2024.

Source: Citinewsroom.com 

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Traders, ‘Okada’ riders take over Circle pavement

•Korle-Bu CEO with staff of Nivaansh MediQas

• Korle-Bu CEO with staff of Nivaansh MediQas

Activities of traders and drug addicts are contributing to make the Kwame Nkrumah Interchange (Circle) area very uncomfortable and unsafe for commuters.

Day in and out, pedestrians are ‘ejected’ from the pavement created for their safety as traders preferred to sell their wares on that space.

That hinders the free movement of the pedestrians.

The small space left for the pedestrians are also shared with ‘Okada’ riders.

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As if these woes are not enough for a commuter on a single day, they also have to navigate carefully to avoid clashes with drug addicts and the mentally challenged.

These people have turned the pavements into their places of abode, covering every inch of space with their wares.

Our photographer, Lizzy Okai, captures some of the unfriendly scenes the authori­ties must try and deal with to restore sanity to the area.

 By Lizzy Okai

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NDC outlines demands before committing to Peace Pact

The National Chairman of the opposition National Democratic Congress (NDC), Johnson Asiedu Nketia, has set forth specific conditions that the party insists must be met before considering signing the Peace Pact advocated by the National Peace Council in anticipation of the December 7 elections.

Mr. Nketia expressed scepticism about the effectiveness of past Peace Pacts, highlighting that they had not achieved their intended outcomes, particularly referencing the 2020 elections, during which eight NDC members were allegedly killed by national security operatives without accountability.

During an August 20 meeting with the National Peace Council at the NDC headquarters, Mr. Nketia detailed the certain conditions for the NDC’s participation in the Peace Pact.

The NDC is demanding that the recommendations from the investigation into the violence during the Ayawaso West Wuogon by-election be fully implemented.

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They also want those responsible for election-related violence in the last election to be prosecuted, stressing the importance of justice and prevention.

The party is calling for accountability regarding irregularities in the printing of ballot papers and insists that visible measures be taken to prevent such issues from happening again.

They are also pushing for a thorough investigation into the missing IT equipment from the Electoral Commission’s (EC) warehouse, expressing concerns about the integrity of the EC’s systems and the potential bias of its staff.

Furthermore, the NDC is urging the President to publicly commit to respecting the results of the 2024 elections. Lastly, the party insists that the Peace Pact should be signed by key figures, including the Inspector General of Police, the Chief Justice, the Attorney-General, and the National Security Coordinator, before they will consider signing it themselves.

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Source: Citinewsroom.com 

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