BoG Pushes for Value Addition in Exports, Moves to Hedge Gold Risks
The Governor of the Bank of Ghana, Dr. Johnson Asiama, has assured that the central bank is taking proactive steps to safeguard the country’s international reserves against potential shocks from falling gold prices.
Dr. Asiama during a recent press briefing acknowledged concerns raised by BMI, a unit under Fitch, about liquidity and price risks associated with the growing gold reserves held by African central banks, including Ghana.
He admitted that Ghana, like many commodity-driven economies, remains highly exposed to fluctuations in global prices, and any sharp decline in gold could affect the country’s reserves.
“This is precisely why we are initiating a hedging programme to safeguard against such destabilising shocks,” Dr. Asiama said.
But beyond hedging, the Governor emphasized that Ghana’s long-term protection lies not only in managing risks but also in changing the very structure of the economy. He highlighted the importance of increasing value addition to gold and other exports, while also diversifying the export base.
“These are critical steps we must take as a country to reduce our vulnerability to external price movements and enhance the resilience of our economy,” he stressed.
The Governor’s comments come at a time when Ghana’s economy, though stabilizing, is still navigating external pressures from volatile commodity markets. Analysts say the push for value addition such as refining gold locally, boosting cocoa processing, and exploring non-traditional exports will be key to ensuring that Ghana is not only shielded from global price swings but also able to capture more value from its resources.
For many ordinary Ghanaians, the message is clear: while the central bank is working to cushion short-term risks through hedging, the bigger task lies in transforming the economy so that Ghana earns more from what it produces, instead of relying heavily on raw commodity exports.
