Dr. Mohammed Amin Adam attributes Ghana’s exchange rate stability to the $8.9 billion in international reserves left by the Akufo-Addo administration. He claims that the existing cedi value is maintained due to these reserves, as opposed to any new strategies introduced by the current government. He emphasized that the efficacy of past policies and reserves plays a crucial role in managing the economic landscape.
Former Finance Minister Dr. Mohammed Amin Adam has praised the significant international reserves of $8.9 billion from the Akufo-Addo administration for contributing to Ghana’s current exchange rate stability. He noted that these gross international reserves facilitate the maintenance of the Ghanaian cedi’s value, which has experienced a modest depreciation of 6.5 percent thus far in 2025, not due to sustainable governmental strategies but rather the inherited reserves.
Dr. Adam indicated that the existing disparity between inflation rates and the depreciation shows extensive intervention by the central bank in the currency market. He credited the previous government led by John Dramani Mahama, along with the Bank of Ghana, for their capability to manage the economy effectively during this period, relying on the reserves they inherited, totaling $8.9 billion as of the end of 2024.
He emphasized that the observed exchange rate stability cannot be attributed to any new policies set forth by the incumbent government, underscoring that it is primarily tied to the significant reserves left by the Akufo-Addo administration. “… The true state of the nation is that exchange rate stability… is not by any magic from the Mahama government. It is because the Akufo-Addo government left significant levels of international reserves for them,” stated Dr. Amin Adam.
In summary, Dr. Mohammed Amin Adam asserts that the stability of Ghana’s exchange rate is largely a result of the substantial reserves inherited from the Akufo-Addo administration rather than new governmental policies. This situation underscores the importance of international reserves for currency stability and highlights the interventions made by the central bank using these funds.
Original Source: www.ghanabusinessnews.com
