Ghana faces risk of dual commodity shock as gold market volatility deepens – BoG Governor warns

The Governor of the Bank of Ghana, Dr Johnson Asiama, has cautioned that Ghana’s economy could come under renewed strain if instability in global gold markets persists, warning that the country is ill-prepared to absorb another major external shock.

He explained that recent fluctuations in gold prices point to increasing uncertainty in the global economic environment, adding that the situation is evolving rapidly alongside existing pressures from the oil market.

According to him, Ghana must closely monitor developments to avoid further disruptions to its economic stability.

Dr Asiama noted that although gold prices experienced a sharp downturn in 2025, it remains unclear whether the current movements signal a temporary shift or a longer-term trend.

He stressed that the unpredictability of the market makes it difficult to determine the likely trajectory in the months ahead.

He emphasised that Ghana’s heavy reliance on gold exports heightens the country’s vulnerability, as the commodity continues to account for a significant share of foreign exchange earnings.

While he expressed cautious optimism that any decline in prices may be short-lived, he acknowledged that stronger gold prices could help cushion the impact of volatility in the oil sector.

Speaking on Channel One TV on Wednesday, March 25, Dr Asiama stated: “If you look at gold prices from last week, it appears we are in a different world. We are already dealing with shocks from oil, and we could also face a shock from gold. The key question is whether this will be short-term—we can only speculate at this stage. Gold makes up a large portion of our export earnings, so we simply cannot afford another shock.”

He added that Ghana’s improved reserve position offers some level of protection, noting that reserves built up in 2025 provide nearly six months of import cover.

However, he warned that a prolonged crisis in the Middle East could undermine these gains, making it more difficult to sustain economic stability in the near term.

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