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Gold prices will remain high relative to historical averages over the Fitch Solutions forecast period.
According to the UK-based firm, both the scale of price increases and the region's exposure will have significant political consequences.
In its Sub-Saharan Africa Monthly Outlook, it said elevated gold prices are likely to embolden the Ghanaian government to take greater policy risks.
Gold accounts for roughly 40% of Ghana’s exports, serving as its primary source of foreign exchange.
“So high prices have pushed up reserves”, it mentioned.
Fitch Solutions pointed out that the surge in prices will push the current account surplus from 4.2% of Gross Domestic Product (GDP) in 2024 to 5.8% in 2025.
“We project reserves to rise sharply from US$6.4 billion in 2024 to US$11.6 billion in 2025, covering a comfortable 4.8 months of imports.
International gold prices have surged, driven by global uncertainty, US President Trump administration's trade policy shifts, geopolitical tensions, and central bank purchases.
“We think that high gold prices will have a broad range of political implications in Sub-Saharan Africa (SSA), given that most countries in the region export at least some gold”, the UK-based firm stressed.
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