Dr. Tiah Abdul-Kabiru Mahama, a Member of Parliament representing Walewale and a former economic advisor to Dr. Mahamudu Bawumia, has refuted claims that the New Patriotic Party (NPP) bequeathed a depreciating cedi to the incumbent administration. Speaking on Channel One TV’s “The Point of View,” Dr. Abdul-Kabiru asserted that the cedi was already on a trajectory of recovery before the change in government, dismissing suggestions of a currency crisis during the transition period. He acknowledged that the extent of currency appreciation can fluctuate based on factors such as reserve accumulation and external sector performance, but maintained that the cedi’s overall trend was positive.
Dr. Abdul-Kabiru highlighted the cedi’s performance, noting its decline to GHS16 against the dollar around November 2024, followed by a subsequent recovery. He argued that this demonstrates the NPP’s efforts to stabilize the currency before handing over power. He stressed that despite the cedi’s earlier struggles, which saw it depreciate to the GHS 16 mark, the government then in power undertook policies leading to improvements and was thus not in a crisis state at the time of the transition.
To further emphasize his point, Dr. Abdul-Kabiru cited the cedi’s appreciation against the dollar between May 1 and May 20, a period following the change in government. He attributed this positive trend to the groundwork laid by the NPP administration, suggesting that the current government is reaping the benefits of their predecessors’ economic policies. While acknowledging the potential for varying levels of appreciation based on prevailing economic conditions, he reiterated that the fundamental trajectory of the cedi was towards recovery.
This assertion counters the narrative that the NPP left behind a weakened currency, a claim often made in political discourse. Dr. Abdul-Kabiru’s argument hinges on the cedi’s performance before and after the transition, citing the currency’s recovery from its lowest point and its subsequent appreciation. He positions the NPP’s economic management as having set the stage for the cedi’s continued stability.
Dr. Abdul-Kabiru’s statements are significant in the context of ongoing debates surrounding the Ghanaian economy. His position, as both a Member of Parliament and a former economic advisor, lends weight to his claims. By challenging the narrative of a depreciating cedi during the transition, he seeks to reframe the discussion around the NPP’s economic legacy.
Ultimately, the debate over the cedi’s performance during the transition period reflects
