Ghana must use gold to reduce overdependence on dollar – Gideon Boako
Tano North Member of Parliament (MP), Gideon Boako, says Ghana must strategically use its gold resources to reduce its overdependence on the US dollar and strengthen the country’s economic sovereignty.
Gideon Boako, the Tano North Member of Parliament, has emphasized the importance of Ghana strategically utilizing its gold resources to lessen its dependence on the US dollar and enhance the nation's economic independence. Boako argued that Ghana's status as a significant gold-producing nation presents an opportunity to convert a portion of its natural-resource wealth into a strategic reserve asset.
He pointed out that amassing domestically produced gold could offer an extra layer of defense against external shocks and foreign exchange shortages.
Boako underscored the significance of this approach, particularly in the current context where countries are reassessing the risks linked to holding substantial portions of their reserves in foreign currencies. He stated, "For all economies, it is a hedge against over-reliance on any single reserve currency." Boako advocated for Ghana's gold strategy to extend beyond conventional mining and export activities.
He stressed the need to retain more value from the country's gold within the domestic economy to strengthen international reserves, stabilize the cedi, and minimize the necessity for substantial external borrowing.
Boako believed that Ghana's experience in this regard could act as a model for other countries that produce commodities. He explained, "By directing domestically produced gold into reserves, nations can decrease external borrowing costs, mitigate currency crises, and retain value onshore."
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