Mahama Pledges to Stabilize Cedi

The proposed reforms include reintroducing foreign account taxes to generate revenue and ensuring that foreign currency transactions are tightly controlled.

The President of the United States Africa Command, Ghana, Abednego Orstin Rawlings, has assured Ghanaians that the cedi depreciation menace will be addressed by former President John Dramani, Mahama, the flagbearer of the National Democratic Congress (NDC), if re-elected on December 7.

According to him, a former deputy chief of staff, Lawyer Dr Esther Valerie Sawyerr, gave a hint of ongoing discussions on how to tackle the depreciation of the cedi by instituting forex desks in all banks.

This measure, she said, would stabilize the cedi and promote economic growth by ensuring controlled access to foreign currencies.

According to John Mahama, the Ministry of Finance will direct the Bank of Ghana to establish forex desks in every bank to streamline currency exchange for businesses, particularly those complying with Social Security and National Insurance Trust (SSNIT) regulations.

This system will prioritize companies registered under SSNIT and adhering to tax obligations, ensuring that only qualified businesses could access foreign currencies for imports.

He criticized the current government, led by President Nana Addo Dankwa Akufo-Addo and Vice-President Dr Mahamudu Bawumia, for mismanaging the economy and causing the cedi to depreciate significantly.

Mahama highlighted high taxes such as the COVID-19 levy, betting, and more which he described as burdensome and unnecessary, pledging to abolish them to relieve Ghanaians.

Mahama also promised stricter regulations on foreign currency transactions, including banning individuals from trading in forex without authorization and penalizing businesses that price goods or properties in foreign currencies.

The proposed reforms include reintroducing foreign account taxes to generate revenue and ensuring that foreign currency transactions are tightly controlled.

Dr. Valerie Sawyer, a prominent member of the NDC, supported Mahama’s proposals, noting that under his previous administration, the cedi was far more stable.

She attributed the current economic challenges to what she called “recklessness and incompetence” in the management of Ghana’s financial systems by the governing New Patriotic Party (NPP).

In addition to forex reforms, Mahama vowed to implement policies ensuring that businesses with over 20 employees have access to flexible foreign currency transactions, provided they meet SSNIT requirements.

He also proposed a cap on weekly foreign currency transfers to discourage capital flight and stabilize the local currency.

The former president assured Ghanaians that his administration would hold accountable any individuals or institutions engaging in illegal forex trading.

Furthermore, diplomatic missions and foreign nationals involved in unregulated currency transactions will be subjected to strict scrutiny and penalties.

John Mahama expressed confidence that these measures would restore investor confidence and rebuild the cedi’s strength, positioning Ghana on a path to sustainable economic stability.

MahamaNDCNPPpledgesStabilize Cedi