- Dr Bawumia has described Mahama’s criticism as a lack of understanding of the key aspects of the economy
- Dr Mahamudu Bawumia has hit back at former President John Mahama concerning his tweet on the cedi’s depreciation
Vice President Dr. Mahamudu Bawumia has hit back at John Mahama, insisting the former president lack an understanding about the economy.
Mahama criticized the ruling New Patriotic Party (NPP) government over the recent depreciation of the cedi which has got exporters and importers of commodities alarmed.
The former president posted a throwback video on social media in which Dr. Bawumia, then vice presidential candidate of the NPP, was downplaying the country’s economy under the Mahama administration.
“When the fundamentals of the economy is weak, the cedi will expose you,” Dr. Bawumia said in the video.
Mahama’s position was that the NPP has made the economy worse despite promising to improve it when voted into power.
However, responding to the former president, Dr. Bawumia said Mahama lacks an understanding of the economy.
According to him, he understands the “difficulty of the former President in appreciating the currency depreciation debate”.
In a statement, the Vice President used an infograph to detail out the rate of the cedi depreciation under former presidents John Kufour, Mills/Mahama and the current administration to back his argument.
According to the infograph by Dr. Bawumia, under the 8-year rule of Mr Kufuor, the cedi depreciated by 72 percent and under the 8-year rule of the late Professor John Evans Atta Mills and John Mahama, it depreciated by 247 percent.
Read the full statement from Dr. Bawumia below:
It has been brought to my attention that former President Mahama has recently been talking about exchange rate depreciation.
The former President’s comments once again, sadly demonstrate his lack of understanding on key aspects of our economy.
I understand the difficulty of the former President in appreciating the currency depreciation debate. I would try to simplify the explanation for him.
The data on the performance of the Cedi over the years shows that the Cedi is recording one of its best performances in the Fourth Republic under President Nana Addo Dankwa Akufo-Addo.
The depreciation of the Cedi against the US dollar is one of the lowest in the first year of any government since 1992. The data is clear on this indisputable fact.
An equally instructive fact to note is that the NPP has demonstrated to be by far better managers of the Cedi than the NDC.
In the entire 8 years of President Kufuor’s (NPP) rule from 2001 to 2008, the price of the Cedi relative to the dollar moved from GHc0.7 to GHc1.2, representing a depreciation of 72%.
However, in the 8 years rule of both Presidents Mills and Mahama (NDC) from 2009 to 2016 the Cedi depreciated by 247%, moving from GHc1.2 to GHc4.2.
Such higher rate of depreciation in less than a decade is simply unacceptable and signifies high levels of incompetence.
Although it is early days, there is much optimism for a more stronger currency under the leadership of Nana Addo Dankwa Akufo-Addo. Converse to the first 18 months of many governments in which the Cedi depreciated by more than 10%, the first 18 months of this government has recorded a marginal depreciation of 7%.
The reason for our relatively strong exchange rate performance is that our economic fundamentals (which Mr. Mahama sought to question) under Nana Akufo-Addo are strong. Much stronger than the mess he left us.
The deficit is lower, inflation is single digit, the debt to GDP ratio is declining, interest rates are declining, our foreign exchange reserves are healthy, business confidence is rising and economic growth is increasing.
The graphics above tell the story. I hope the former President takes his time to read the facts.
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