Former Finance Minister Mohammed Amin Adam asserts that the current stability of Ghana’s exchange rate is primarily attributed to the substantial international reserves bequeathed by the preceding Akufo-Addo administration. He argues that the relatively low depreciation rate of 6.5% in 2025 is not a result of any sustainable policy implemented by the current Mahama government, but rather a consequence of the $8.9 billion in gross international reserves left at the end of 2024. This substantial reserve, according to Adam, has allowed the Mahama administration and the Bank of Ghana to intervene heavily in the market, preventing a more significant depreciation of the cedi. He contrasts the current situation with the implication that the Mahama administration’s own policies would not have achieved this level of stability.
Adam emphasizes that the current stability is a direct result of the Akufo-Addo government’s prudent fiscal management, which resulted in the accumulation of these reserves. He directly criticizes President Mahama for allegedly omitting this crucial factor from recent addresses to the nation, portraying it as a deliberate attempt to obscure the true source of the exchange rate stability. Adam contends that the Mahama administration is essentially riding on the coattails of the previous government’s economic success, utilizing the inherited reserves to artificially prop up the cedi’s value. This, he argues, misrepresents the true state of the nation’s economy and gives a false impression of the current government’s economic competence.
Adam’s core argument revolves around the idea of inherited economic strength. He portrays the Akufo-Addo administration as having left a solid economic foundation, exemplified by the substantial international reserves, which the Mahama administration is now benefiting from. He insists that the current positive economic indicators, especially the stable exchange rate, should not be attributed to the current government’s actions but are instead a direct consequence of the previous administration’s policies. This narrative seeks to highlight the alleged economic mismanagement of previous Mahama administrations and contrast it with the supposed fiscal responsibility of the Akufo-Addo government.
The former minister’s statements essentially accuse the Mahama administration of taking undue credit for the current exchange rate stability. He alleges that their interventions in the market are only possible due to the substantial reserves left by the previous government. Without these reserves, Adam implies, the cedi would likely be experiencing much greater volatility. He paints a picture of a government masking its own economic inadequacies by relying on the legacy of its predecessor. This, he argues, misleads the public about the true state of the nation’s economic health and the effectiveness of the current government’s policies.
The implications of Adam’s assertions are significant. If his claims are accurate, it suggests that the current economic stability is not sustainable in the long run. Once the inherited reserves are depleted, the cedi could become vulnerable to significant depreciation unless the Mahama government implements effective and sustainable economic policies of its own. Adam’s statements serve as a challenge to the current administration to demonstrate its own economic competence and to move beyond relying on the economic legacy of the previous government.
Furthermore, Adam’s accusations raise questions about transparency and accountability within the government. By allegedly omitting the role of the inherited reserves in stabilizing the cedi, he suggests that the Mahama administration is attempting to mislead the public about its economic performance. This raises concerns about the government’s commitment to open communication and its willingness to acknowledge the contributions of previous administrations. The accusations, therefore, underscore the importance of transparency and accurate reporting of economic data to provide a clear and unbiased picture of the nation’s economic health.
