NPP’s Economic Legacy: Professor Bokpin Credits Previous Ghanaian Government for Cedi Stability

Ghana’s economic landscape has witnessed a significant shift in recent times, with the stability of the cedi being a notable highlight. According to Professor Godfred Bokpin, a renowned economist and Finance Professor at the University of Ghana, the New Patriotic Party (NPP) deserves partial credit for the current stability of the Ghanaian cedi.

Improved Macroeconomic Indicators

In a recent interview on Citi FM, Professor Bokpin attributed the cedi’s resilience to improved macroeconomic indicators and the continuity of certain policies. He emphasized that the previous NPP government’s post-election economic management had a significant impact on the cedi’s performance. Notably, Ghana’s GDP growth rate exceeded the IMF program’s target, reaching 5.7% in 2024. Additionally, the country’s international reserves showed remarkable strength.

Gold-for-Reserves Programme

The NPP government’s Gold-for-Reserves program played a crucial role in shoring up foreign reserves, creating a foundation for the current administration to build upon. This foundation has contributed significantly to stabilizing the foreign exchange market. Professor Bokpin stressed that policy continuity, especially in foreign reserve management, has been instrumental in maintaining relative stability in the foreign exchange market.

Policy Continuity

The economist emphasized that the current stability of the cedi is not solely the result of the current government’s actions but rather a culmination of prudent policies implemented over time. This highlights the importance of sustained economic strategies and collaboration between successive governments.

Implications for Ghana’s Economy

The stability of the cedi has far-reaching implications for Ghana’s economy, including attracting foreign investment, promoting trade, and maintaining economic growth. As the country continues to navigate the complexities of the global economy, understanding the factors that contribute to currency stability will be crucial for informed decision-making.

Expert Insights

Professor Bokpin’s assessment underscores the significance of sound economic management and policy continuity in achieving stability in the foreign exchange market. His comments provide valuable insights into the dynamics of Ghana’s economy and the role of previous governments in shaping its current state.

Conclusion

In conclusion, the NPP’s economic legacy appears to have had a lasting impact on Ghana’s economy, particularly in terms of cedi stability. As the country moves forward, it will be essential to build on the foundations laid by previous governments to ensure continued economic growth and stability.

Source: Africa Publicity