Middle East tensions put Ghana’s reserves under pressure – BoG Governor

Bank of Ghana Governor Dr Johnson Asiama has warned that ongoing Middle East tensions have significantly strained Ghana's international reserves in recent months. In an interview with students from the University of Ghana, he stated that the past three to four months have been particularly challenging for the country's reserves.

Dr Asiama revealed that Ghana's reserves declined from US$14.1 billion to US$12.9 billion during this period. This fall was attributed to the impact of global events on the country's reserves, prompting the central bank to provide support to key sectors. While discussing the importance of maintaining strong reserves, Asiama emphasized that this was one of the positive outcomes of the previous year's efforts.

He highlighted the need to bolster reserves to withstand global economic shocks, especially during times of heightened uncertainty. Asiama also discussed ways to rebuild Ghana's reserves, focusing on increasing earnings from cocoa and non-traditional exports. Currently, non-traditional exports account for about 10% of Ghana's total exports, but the Governor urged for this figure to rise to 15%.

Additionally, he stressed the potential of remittances, which stand at over US$8 billion, to bolster the country's reserves and economic growth by being directed towards productive investments instead of consumption.