The New Patriotic Party (NPP) has been accused by a Chartered economist Bernard Oduro Takyi, widely known as BOT, of using essential reserves meant to stabilize the cedi as collateral for borrowing.In an interview on the Ghana Yensom Morning Show with Kaayire Otafrigya Kwesi Appea-Apraku on Accra 100.5 FM on Wednesday, December 4, 2024, Mr.

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Oduro Takyi claimed that these buffers, set up during the Mills-Mahama era, were specifically intended to ensure cedi stability.He pointed out the Sinking Fund, the Heritage Fund, and the USLA Fund as some of the key reserves created under the previous government.Mr. Oduro Takyi argued that the NPP government has used these funds as collateral for loans, with little to show for the borrowing.

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“This government has borrowed excessively and recklessly, to the point where all the buffers created to stabilize the cedi have been depleted. Yet, they have nothing tangible to show for it,” he remarked.Mr. Oduro Takyi highlighted the dire impact of this borrowing spree on the cedi, which he said is now trading at around GHS 17 to the US dollar.

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“The depreciation of the cedi has not only discouraged international bondholders but has also eroded the confidence of domestic bond investors,” he stressed.He described the economic management under the NPP as worrying, accusing the government of failing to address fundamental issues affecting the economy.

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According to the economist, the buffers created during the Mahama administration were meant to mitigate cedi depreciation and maintain macroeconomic stability.“These were forward-thinking measures to ensure the economy remained resilient, but the NPP has squandered them through borrowing,” he alleged.Mr.

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Oduro Takyi urged the government to take responsibility for the current economic challenges, noting that the public’s focus in the upcoming election will heavily centre on the state of the economy.“This year’s election is about the economy.Ghanaians are looking for a government that can deliver sound economic management,” he concluded.

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