Dr. Tiah Abdul-Kabiru Mahama, Member of Parliament for Walewale and former Economic Advisor to Vice President Dr. Mahamudu Bawumia, has clarified that the Akufo-Addo administration’s restrained use of Ghana’s gold reserves to stabilize the cedi was due to conditions set by the International Monetary Fund (IMF).

Ghana is currently implementing an IMF-supported economic recovery programme designed to restore macroeconomic stability and address persistent fiscal challenges.

Speaking on Channel One TV, Wednesday, May 21, Dr. Abdul-Kabiru explained that under the IMF programme, the government’s monthly use of foreign reserves—including gold—was initially capped at $80 million.

“There was one reason the government couldn’t fully deploy the gold reserves to support the local currency. The IMF conditionalities capped the monthly usage at $80 million,” he noted.

He further explained that the cap was eventually lowered to $60 million, limiting the government’s ability to intervene in the forex market to stabilize the cedi. This restriction was only lifted after a programme review.

“Our gold reserves are part of the broader foreign reserves, and the programme required us to maintain at least three months of import cover. So, if you’re building reserves to meet that threshold, you can’t simultaneously be seen depleting them,” Dr. Abdul-Kabiru added.

He emphasized that while the reserves could have helped in cushioning the cedi, the IMF’s conditions tied the government’s hands until the restrictions were reviewed and removed.

The clarification sheds light on the complex balancing act between meeting IMF conditions and managing currency stability, particularly during times of economic uncertainty.