Ghana’s economy has been affected by oil price shocks amid Middle East tensions, and the escalating tensions are gradually taking a similar toll on gold prices as well.

Consequently, the Bank of Ghana has warned that the country may struggle to deal with a second shock, that is, the shocks from the oil price fluctuations, if the conflict continues.

Speaking during an interview with Accra-based TV station, on Channel One TV’s The Point of View with Bernard Avle on Wednesday, March 25, Dr Johnson Asiama said recent movements in gold prices reflect growing uncertainty in global markets.

“If you look at gold prices from last week, it appears we’re in a different world. Things are changing; not only are we facing shocks from oil, but we’re also likely to face a shock from gold,” he said.

The concerns are centred mainly on the unpredictability of the nature of the market now, citing that even though gold prices had declined sharply in 2025, it remains unclear whether current trends will be short-lived.

“The question is whether this is going to be a short-term phenomenon. We don’t know; we can only conjecture at this stage,” he explained.

Gold, being one of the significant commodities to the strength of the economy in terms of export earnings, the BoG governor highlighted the need for its stability as far as pricing is concerned.

“Gold constitutes a majority of our export earnings currently, and we cannot afford to have a second shock coming from gold,” he warned.

He, however, expressed hope that any downturn in gold prices would be temporary, adding that higher gold prices could help offset the impact of oil shocks.

“I’m hopeful that the gold phenomenon will be a short-lived one, while if we have higher gold prices, it helps to counter the impact of the oil,” he said.Amid the uncertainties, Mr Asiamah, however, indicated that Ghana’s current reserve status would provide some cushion against the external shocks.

“My comfort is that we were able to build adequate reserves in 2025. Almost six months of import cover should be able to carry us some distance,” he stated.

Dr Asiama cautioned that a prolonged Middle East crisis could make it difficult to sustain recent economic gains.

“Let’s just hope the crisis does not persist till the end of this year. Then it becomes challenging to preserve the gains achieved,” he added.

Meanwhile, Ghana’s external reserves have seen about 11.5% increase in the last few months. This comes after the Central Bank in January announced during the 128th MPC meeting that the country’s reserve had hit $13 billion.

However, in about 2 months, the external reserves have recorded a notable increase, reaching approximately $14.5 billion, the Bank of Ghana (BoG) Governor, Dr Johnson Pandit Asiama, said, providing about 5.8 months of import cover and strengthening the country’s external position.

The increase, according to BoG, helps maintain and build buffers to support the economy against external shocks.

Speaking during the opening of the 129th MPC meeting on Monday, March 16, Governor Dr Johnson Pandit Asiama indicated that the increase in reserves indicates a broader trend of improvement in macroeconomic conditions, i.e., Ghana’s economy is currently doing better than earlier predictions suggested.

He noted that inflation has continued to ease, declining to 3.3 per cent in February and extending a streak of 14 consecutive monthly reductions. The rate has now fallen below the central bank’s medium-term target band, presenting new considerations for policymakers.

The Governor also cited the economy’s improved fiscal performance, with Ghana recording a primary surplus of 2.6 per cent of GDP at the end of 2025. He added that economic activity in the real sector is gradually picking up, supported by rising business and consumer confidence as well as a modest recovery in credit growth.

“Taken together, these indicators suggest that the economy is stabilising faster than many anticipated, underscoring the impact of disciplined policy measures,” he said.

About two years ago, investor confidence in the Ghanaian economy was relatively weak, due to fiscal stress, high inflation, and currency volatility; however, according to records, lately, there has been development with economic indicators showing growth and a consecutive decline in inflation.

Consequently, Dr Johnson believes that the growth of Ghana’s external reserves will help attract investors and maintain their confidence to help sustain fiscal growth in the country.

“A stronger reserves position is essential for maintaining investor confidence and enhancing Ghana’s ability to withstand global economic shocks”, he noted.

He further disclosed that reserve accumulation will remain a priority under the government’s Ghana Accelerated National Reserve Accumulation Programme (GANRAP), which aims to significantly boost the country’s external buffers over the medium term.

“Reserve accumulation will remain a priority under the government’s Ghana Accelerated National Reserve Accumulation Programme (GANRAP), which aims to significantly boost the country’s external buffers over the medium term. The initiative targets an increase in reserves to the equivalent of 50 months of import cover by 2028, compared with the current level of about 5.8 months”, he continued.