The Member of Parliament for Bolgatanga Central, Hon. Isaac Adongo has credited the Ghana Gold Board’s domestic gold purchase strategy as a key factor stabilising the cedi.

He rejected claims by the opposition that the government is artificially propping up the currency with a $1.4 billion injection.

Speaking on the floor of Parliament, Mr. Adongo who doubles as the Chairman of the Finance Committee of Parliament responded to accusations that the recent appreciation of the cedi was the result of deliberate liquidity support by the government.

He noted that the previous administration injected $ 60 billion into the economy for 8 years but still failed to halt the currency’s rapid depreciation.

According to him, the difference lies in how the current administration leverages the operations of the Ghana Gold Board and its collaboration with Goldbod in procuring gold to generate foreign exchange.

Mr. Adongo explained that under the domestic gold purchase programme, government resources are channelled to Goldbod to purchase gold locally, after which the gold-backed forex earnings are brought into the economy to support market demand.

“It is a fact that we never pumped $1.4 billion into the economy. What we put into the economy was forex that was generated by the economy”, he revealed.

“If you decide to use GoldBod to buy gold and you make it available to meet your auction in the market, that is not injection of funding; that is pure intermediation of forex,” he added.

He argued that this model has proven far more effective than traditional cash injections because it creates a sustained pipeline of forex inflows tied directly to Ghana’s natural resource wealth.

Mr. Adongo’s remarks come at a time when the cedi has shown signs of recovery, with analysts pointing to increased gold-backed inflows, improved foreign exchange liquidity, and gains from the government’s gold consolidation policies.