Flagbearer for the New Patriotic Party (NPP), Dr. Mahamudu Bawumia, has declared that the current NPP administration has successfully tackled Ghana’s long-standing foreign exchange challenges.

Speaking at the launch of the party's 2024 election manifesto in Takoradi, Dr Bawumia shared insights into how he and President Akufo-Addo navigated the issue.

"I approached President Akufo-Addo with a new idea to address the foreign exchange shortage. I suggested that we leverage our gold production to directly exchange for essential imports, beginning with petroleum products, which were crucial to stabilizing the economy. He approved the pilot, and the results have been promising," Bawumia explained.

Bawumia credited two key policies for rescuing the economy during the recent crisis: the Bank of Ghana's Domestic Gold Purchase Program (DGPP) and the Gold for Oil (G4O) initiative. He pointed out that this approach not only eased the pressure on the cedi but also provided stability for foreign investors repatriating profits without causing currency instability.

"The success of the pilot scheme has given us confidence that we’ve found a lasting solution to the foreign exchange problem, a challenge that has plagued previous governments and contributed to inflation and other economic woes," Bawumia stated.

Looking ahead, Bawumia pledged that his government would fully institutionalize the "Gold-for-Forex" program, a strategy that he believes will provide the much-needed anchor for Ghana’s local currency. The DGPP has already resulted in $5 billion worth of gold purchases over the past few years, and with Ghana’s untapped gold reserves valued at around $10 trillion, Bawumia emphasized the program’s potential to meet all major foreign exchange demands.

"The gold purchase program ensures that for every dollar demand, there is an equal supply, stabilizing the economy. My government will ramp up efforts to use this approach to cover all forex needs," Bawumia concluded.