NPP's Oppong Nkrumah Claims Cedi Appreciation Began Under Previous Government, Not NDC

Kojo Oppong Nkrumah, Member of Parliament for Ofoase-Ayirebi and former government spokesperson, has asserted that the recent strengthening of Ghana's currency against major foreign currencies began during the New Patriotic Party (NPP) administration in 2024, not under the current National Democratic Congress (NDC) government.

Speaking on Asempa FM's Ekosii Sen programme on January 6, 2026, Oppong Nkrumah attributed the cedi's recovery to policies implemented by the previous NPP government, particularly the Gold-for-Reserves programme, which he said laid the foundation for the currency's improved performance.

Oppong Nkrumah provided specific figures to support his claim, stating that when the NPP left office on January 7, 2025, the cedi was trading at approximately 14 cedis to the US dollar—a significant improvement from its position earlier in 2024.

"On January 7, when we were leaving office, the exchange rate for the cedi was 14," the MP stated, seeking to establish that currency appreciation was already underway before the NDC assumed power.

He emphasized that this recovery wasn't coincidental but resulted from deliberate policy interventions implemented during the NPP's final months in office.

Central to Oppong Nkrumah's argument is the Gold-for-Reserves programme, a policy mechanism introduced by the NPP government to leverage Ghana's gold resources to build foreign exchange reserves.

"The appreciation began in the last quarter of 2024, driven by our Gold-for-Reserves programme, which benefited from a rally in gold prices," Oppong Nkrumah explained.

Under this programme, the Bank of Ghana purchases gold from domestic sources, including mining companies and small-scale miners, to increase its foreign exchange reserves rather than relying solely on traditional sources like export earnings, remittances, or foreign loans.

The former NPP minister noted that the programme gained significant momentum during late 2024 when international gold prices rallied, making Ghana's gold reserves more valuable in foreign currency terms.

To substantiate his claims, Oppong Nkrumah cited a Bank of Ghana report that he said confirmed the cedi's recovery during the final quarter of 2024.

"The Bank of Ghana report confirmed that the cedi recovered and appreciated during the last quarter due to increased participation from commercial banks in the gold purchase programme for foreign currency," he stated.

According to the MP, commercial banks' increased participation in purchasing gold for foreign currency was a key driver of the improved exchange rate during this period.

This increased participation allowed Ghana to "build up excess reserves," providing a buffer that helped stabilize the currency and reduce volatility in the foreign exchange market.

Oppong Nkrumah's statement comes amid what appears to be a political dispute over credit for the cedi's recent performance—a significant issue in Ghanaian politics where currency stability serves as a key indicator of economic management competence.

The cedi's exchange rate has long been a politically sensitive topic in Ghana. During election campaigns, opposition parties frequently criticize the government over currency depreciation, while governments tout currency stability as evidence of sound economic management.

The NPP suffered a decisive defeat in the December 2024 elections, with economic challenges—including currency depreciation and high inflation—playing a significant role in voter dissatisfaction.

By highlighting that the cedi's appreciation began before the NDC took office, Oppong Nkrumah appears to be countering any narrative suggesting that the new government's policies are responsible for the improved currency performance.

As of the time of this report, the current NDC government has not issued an official response to Oppong Nkrumah's claims regarding the timeline of the cedi's appreciation.

However, the NDC has previously emphasized its commitment to economic stabilization and maintaining the progress made under the International Monetary Fund (IMF) programme that both parties have overseen during their respective tenures.

President John Mahama, who took office on January 7, 2025, has made economic recovery and currency stability priorities for his administration, though he has also acknowledged inheriting significant economic challenges.

For readers unfamiliar with currency dynamics, appreciation means the cedi has strengthened against foreign currencies like the US dollar, euro, or British pound. This means Ghanaians need fewer cedis to purchase the same amount of foreign currency.

Currency appreciation benefits the country by making imports cheaper, reducing the cost of servicing foreign-denominated debt, and potentially lowering inflation as imported goods and raw materials become less expensive.

However, it can also make Ghanaian exports more expensive for foreign buyers, potentially affecting competitiveness in international markets—though this effect is typically less pronounced for commodity exports like gold and cocoa, which are priced in international markets.

Ghana's Gold-for-Reserves programme represents an innovative approach to foreign exchange management, particularly relevant for commodity-producing developing nations.

Rather than relying exclusively on exporting gold and hoping mining companies repatriate foreign exchange earnings, the programme allows the central bank to directly accumulate gold reserves that can be converted to foreign currency as needed.

This strategy has gained attention from other African nations seeking alternatives to traditional reserve accumulation methods, which often require running trade surpluses or attracting foreign investment—both challenging in volatile global economic conditions.

Currency management remains a critical challenge for developing economies, particularly in Africa where many countries face persistent depreciation pressures due to trade imbalances, limited foreign exchange earnings, and capital flight.

Ghana's experience with innovative reserve management strategies like the Gold-for-Reserves programme offers potential lessons for other resource-rich African nations seeking to stabilize their currencies without relying solely on external borrowing or IMF support.

The programme's timing, coinciding with a rally in international gold prices, highlights how commodity-dependent economies can benefit from favorable global price movements—though this also exposes them to risks when prices decline.

Independent economic analysts would likely note that currency appreciation results from multiple factors, not just a single policy intervention.

These factors include:

• Foreign exchange supply and demand dynamics: Increased gold sales and improved reserve positions

• IMF programme effects: Confidence from international financial institution support

• Reduced import demand: Economic slowdown reducing pressure on foreign exchange

• Remittance inflows: Ghanaians abroad sending money home

• Investor sentiment: Confidence around political transition and policy continuity

The relative contribution of each factor is subject to technical analysis that goes beyond political claims from either party.

The dispute over when the cedi's appreciation began raises important questions about how political parties claim credit for economic outcomes that may result from policies implemented by their predecessors.

This dynamic is common in democracies worldwide, where new governments often benefit from or struggle with the consequences of previous administrations' decisions, making it difficult to attribute success or failure to any single government.

As Ghana continues implementing its economic recovery programme under the new NDC government, both the currency's performance and the political debate over credit for improvements will likely continue.

The Bank of Ghana will continue publishing regular reports on exchange rate developments, foreign reserves, and the factors driving currency performance—data that will provide objective measures against which political claims can be assessed.

For ordinary Ghanaians, the most important question isn't which party deserves credit for past improvements but whether the cedi's stability can be maintained going forward, ensuring that businesses can plan, imports remain affordable, and inflation stays under control.

The coming months will reveal whether the currency appreciation that began in late 2024—regardless of which government initiated it—represents a sustainable trend or a temporary improvement that requires continuous policy support to maintain.