The Governor of the Bank of Ghana, Dr. Johnson P. Asiama, has cautioned that despite Ghana’s recent foreign exchange stability and the impressive appreciation of the cedi, the country remains vulnerable to external shocks due to its over-reliance on gold, cocoa, and oil exports.
Delivering the keynote address at the Graphic Business/Stanbic Bank Breakfast Meeting held on Monday, July 15, 2025, at the Labadi Beach Hotel, Dr. Asiama noted that while the cedi has strengthened by over 42% year-to-date, sustaining these gains will require addressing structural weaknesses in the economy.
“Our current account and reserve strength are still largely dependent on a few commodity exports – gold, cocoa, and oil. These sectors are highly vulnerable to price fluctuations driven by factors beyond our control,” he stated.
He explained that recent high gold prices, which have significantly boosted export earnings, are largely due to geopolitical tensions, including the ongoing Iran-Israel conflict. Gold prices currently trade above US$3,200 per ounce. However, he warned that a future correction in global prices could quickly narrow Ghana’s trade surplus and place renewed pressure on the cedi.
“While beneficial for now, a future correction in prices could quickly narrow our trade surplus,” he cautioned.
Dr. Asiama added that Ghana’s import profile remains heavily skewed toward energy, capital goods, and essential commodities, creating seasonal spikes in forex demand, especially in the second half of the year.
He stressed the need for diversification of the country’s export base to reduce exposure to external shocks and build a more resilient economy. According to him, beyond commodities, Ghana has untapped potential in non-traditional exports such as information technology, digital finance, education services, architecture, and the creative industries.
“If we empower SMEs to participate directly in international trade, we broaden the forex base and reduce concentration risk,” he noted.
The Governor also highlighted that while a strong currency improves terms of trade and helps lower inflation, prolonged appreciation can hurt export competitiveness, making Ghanaian goods less attractive abroad and slowing industrial recovery.
He urged policymakers to balance forex strength with policies that stimulate private sector growth to ensure macroeconomic gains translate into job creation and improved livelihoods.
“It is not enough to stabilise the cedi. The real measure of success is whether we can translate forex stability into broad-based economic transformation, one that empowers businesses, creates jobs, and lifts the productive capacity of the nation,” he emphasised.
Source: Starrfm.com.gh
