Africa-Press – Ghana. Mr Isaac Adongo, the Member of Parliament for the Bolgatanga Central constituency, has described the establishment of the GoldBod as a “pure common-sense approach” that helped rescue Ghana from economic collapse and stabilised the Ghanaian cedi.
Addressing party supporters at an end of year party, organised by the Upper East Regional Communicators of the National Democratic Congress (NDC) in Bolgatanga, Mr 000 said the previous NPP administration left behind an economy in severe distress, with foreign reserves depleted to about 0.8 months of import cover, forcing Ghana to seek a US$3 billion IMF bailout under difficult circumstances.
He said the situation was worsened by excessive money printing without corresponding productivity, which fuelled inflation and weakened the cedi.
“They printed money like Yahoo boys, forgetting that Americans and Europeans do not spend cedis,” he said, arguing that the lack of foreign currency made it impossible to meet external obligations and import essential goods, including medicines.
Mr Adongo explained that Ghana required about US$250 million every week or US$1 billion monthly, to import essential goods, pay energy sector bills, and service external debts.
“With no access to international borrowing and no reserves to fall on, we had to think outside the box,” he noted.
That decision, he said, led to the formalisation of the gold sector through the GoldBod, an initiative aimed at mobilising foreign exchange locally rather than relying on external loans.
Responding to claims that the GoldBod caused losses to the Bank of Ghana, Mr Adongo argued that the US$214 million cost associated with the arrangement was insignificant compared to the benefits.
“Would you rather pay US$214 million to accumulate US$11 billion in reserves, or go begging for loans that were no longer available?” he asked.
He stressed that Ghana had now built US$11 billion in foreign reserves, even after meeting weekly forex demands, achieving the target three years ahead of schedule.
He said by comparison, borrowing US$3 billion annually on the European market would had cost Ghana about US$220 million in interest alone, without guaranteeing long-term stability.
Mr Adongo criticised attacks on the GoldBod and its leadership, saying they were attempts to undermine its success.
“GoldBod is common sense economics. Not every problem requires complex theories. Sometimes basic logic is enough. GoldBod may have had costs, but it saved this country from collapse,” Mr Adongo emphasised.
He urged party communicators to defend the initiative, describing Mr Sammy Gyamfi, the Chief Executive Officer as “Ghana’s best bet” in managing the sector.
The MP, who is also a Board Member of the Bank of Ghana, pointed to improved exchange rate stability, reduced fuel prices, and declining costs of imported goods, as evidence that the tough measures undertaken by the current government were working.
“Stability doesn’t mean the exchange rate will never move. It means it moves within a reasonable and manageable range, and that is what we are seeing today,” he explained.
Mr Adongo also praised Dr Cassiel Ato Forson, the Finance Minister for enforcing fiscal discipline, cutting wasteful spending, and making difficult decisions in the national interest.
“There are no private jets, no frivolous projects and no reckless borrowing,” he said.
He added that economic recovery was being achieved through prudent management rather than new loans.
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