NDC should credit Bawumia for introducing gold-for-reserves policy – Kwadwo Poku

Energy expert and political commentator Kwadwo Poku has called on the governing National Democratic Congress (NDC) to acknowledge former Vice President Dr Mahamudu Bawumia for his role in the introduction of Ghana’s gold-for-reserves policy.

Mr Poku argued that the NDC government should recognise the contributions of the previous New Patriotic Party (NPP) administration to policies aimed at strengthening Ghana’s international reserves and reducing pressure on the country’s foreign exchange market.

His comments have renewed discussions about the origins of the gold-for-reserves initiative and the respective contributions of successive governments to Ghana’s economic management.

The policy, which involves using gold purchases to support the Bank of Ghana’s reserve position, has been presented as part of efforts to diversify the country’s reserves, strengthen the cedi and reduce reliance on conventional foreign currency reserves.

According to Mr Poku, the NDC should give credit where it is due rather than presenting the policy’s benefits as though they were achieved solely under the current administration.

He maintained that recognising the role of previous governments in developing economic initiatives would promote transparency and ensure that public discussions about Ghana’s economic performance are based on an accurate account of policy decisions.

The gold-for-reserves programme has become an important subject in Ghana’s economic debate because of the country’s position as a major gold producer and the need to build stronger external buffers against economic shocks.

Ghana has faced persistent challenges involving foreign exchange availability, exchange-rate volatility and the cost of servicing external obligations. Supporters of the initiative argue that increasing the use of domestically produced gold can help strengthen the country’s reserve position and improve its ability to withstand external pressures.

However, the effectiveness of the programme depends on several factors, including the cost of gold purchases, international gold prices, transaction arrangements and the extent to which the resulting reserves can support broader macroeconomic stability.

The debate over who deserves credit for the policy also reflects the wider political contest between the NPP and NDC over their respective economic records.

While Mr Poku’s comments call for recognition of Dr Bawumia’s contribution, a complete assessment of the programme’s history would require examining the policy’s development, implementation and subsequent changes under successive administrations.

The discussion is expected to keep attention focused on the gold-for-reserves initiative and its role in Ghana’s efforts to strengthen international reserves, stabilise the economy and protect the cedi.

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