Dr. Tiah Abdul-Kabiru Mahama, Member of Parliament for Walewale and former Economic Advisor to Dr. Mahamudu Bawumia, engaged in a heated debate on Wednesday, May 22, with Prof. Sharif Mahmud Khalid, Economic Advisor to Vice President Prof. Jane Naana Opoku-Agyemang, over the recent appreciation of the Ghanaian cedi.
The cedi’s upward trajectory has sparked political debate, with both the New Patriotic Party (NPP) and the National Democratic Congress (NDC) claiming credit for the currency’s improved performance.
The exchange took place during an appearance on The Point of View on Channel One TV, where the two economists discussed which administration should be credited for the recent gains.
Dr. Kabiru attributed the cedi’s appreciation to the government’s decision to rein in public spending. He cited delayed payments to contractors, Independent Power Producers (IPPs), and even statutory obligations as deliberate measures that have eased demand for foreign exchange, thereby reducing pressure on the cedi.
“Now the government has decided not to spend, even statutory payments have not been made. Compensations that are due to certain members of Article 71 holders have not been paid. Goods and services that were procured and the government projected and budgeted for the same have not been paid for.
“No contracts have been awarded. If you put that into the equilibrium, you realise that the decision not to spend is contributing to the relative stability of the cedi. Because there’s no pressure,” he argued.
However, Prof. Khalid strongly disagreed, criticising the erstwhile Akufo-Addo administration’s handling of the economy and questioning the credibility of the non-spending claim.
Prof. Khalid further noted that during the previous administration, the Bank of Ghana recorded significant losses, pointing to what he described as mismanagement of the economy.
“When a finance minister goes to parliament to present the budget, the spending starts from there, once the budget is approved. When you and your boss [Dr Bawumia] say we’re not spending, I don’t know where that is coming from.
“The commitments, appropriations, and disbursements that are yet to go are not spending? Come on, guys, what are you talking about?” he asked.