Economist and Finance Professor at the University of Ghana, Professor Godfred Bokpin, has credited the ruling government with stabilizing the Ghanaian cedi, attributing the currency’s recent appreciation against major foreign currencies to reduced government expenditure.
According to Professor Bokpin, the NDC administration has made significant strides in cutting down wasteful spending, contributing to the cedi’s recent stability.
“We have seen this government do within five months what we have been calling for since COVID-19,” he stated on TV3’s Key Points.
The government has reduced expenditure by GHS10 billion in just five months compared to 2024, a move that has helped inject stability into the economy.
Professor Bokpin emphasized the importance of fiscal consolidation and reducing unnecessary spending to avoid severe economic consequences.
The comments come amid a heated debate about the factors contributing to the cedi’s appreciation, with the opposition New Patriotic Party (NPP) claiming the improvement stems from policies it implemented while in office.
Former vice president and NPP presidential candidate, Dr. Mahamudu Bawumia recently argued that the ruling government cannot point to a single policy responsible for the cedi’s appreciation.
However, Professor Bokpin’s analysis suggests that the current administration’s actions have played a significant role in stabilizing the currency.
“We have seen this government do within five months what we have been calling for since COVID-19,” he reiterated, highlighting the government’s swift action in reducing expenditure.
The development has sparked discussions on the effectiveness of the government’s policies in stabilizing the economy. Professor Bokpin’s endorsement of the government’s fiscal discipline provides valuable insight into the recent economic trends in Ghana.