Accra: Former Finance Minister, Dr. Mohammed Amin Adam, has highlighted the significant role of the Nana Addo Dankwa Akufo-Addo administration's international reserves in stabilizing Ghana's exchange rate. Dr. Amin Adam emphasized that the $8.9 billion in gross international reserves left by the previous government has been instrumental in maintaining the stability of the Ghanaian cedi.
According to Ghana News Agency, Dr. Amin Adam discussed these points during his address to the Parliamentary Press Corps at the True State of the Nation event held by the New Patriotic Party Minority Caucus at Parliament House in Accra. He noted that the 6.5 percent depreciation rate observed up to 2025 is not the result of sustainable strategies by the current government. Instead, he attributed the stability to the inherited reserves, stating that the disparity between inflation and the depreciation rate indicates significant central bank intervention.
Dr. Amin Adam credited the ability of the John Dramani Mahama administration and the Bank of Ghana to intervene in the market to the reserves inherited from Akufo-Addo's administration. He clarified that this market intervention is possible because the previous administration left behind a substantial reserve of $8.9 billion by the end of 2024, which is now being utilized to support the cedi's value.
He further stressed that the exchange rate stability is not due to new policies implemented by the Mahama government but rather the reserves from the Akufo-Addo administration. Dr. Amin Adam concluded by asserting that the true state of the nation is evidenced by the inherited reserves, which are the cornerstone of the current exchange rate stability.
