NDC Government dipped into Ghana’s foreign reserves to prop up the cedi – Fmr Ahafo Ano South East MP, Hon. Francis Manu-Adabor alleges
Former Member of Parliament for Ahafo Ano South, Hon. Francis Manu-Adabor, has accused the National Democratic Congress (NDC) government of artificially propping up the Ghanaian cedi by drawing from the country’s foreign reserves during the early months of their administration.
Speaking on Kessben FM, the former MP claimed that the initial appreciation of the cedi under the NDC was not due to sound economic policy but rather the result of short-term intervention measures that are now proving unsustainable.
According to Hon. Manu-Adabor, the NDC government injected large amounts of Ghana’s foreign reserve funds into the forex market to stabilize the currency and create the impression of economic competence. “They went into Ghana’s foreign reserve money and threw it into the market, that’s why the cedi appreciated in their early days,” he stated. “But now reality has dawned on them, and that’s why the cedi is going down.”
The Ghanaian cedi has recently come under renewed pressure, with depreciation concerns impacting businesses and raising inflation fears. Critics have questioned the government’s economic strategy, especially in light of recent performance indicators. Manu-Adabor’s comments add to the growing political debate over how the NDC is managing the economy amid ongoing economic challenges.
While the NDC government has not officially responded to these claims, some economists have noted that drawing on foreign reserves to support a currency is not uncommon in crisis situations. However, such a move is typically seen as a short-term measure and can have long-term consequences if not backed by structural reforms and sustainable fiscal policies.
As Ghana continues to navigate economic turbulence, the debate over currency stability, reserve management, and government policy choices remains front and center in national discourse.
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