The Institute of Statistical, Social and Economic Research (ISSER) has cautioned that Ghana's increasing reliance on gold as part of its international reserves could expose the country to financial risks if global gold prices continue to decline.

Speaking at the Post-Revenue Mid-Year Budget Review Forum in Accra, the director of ISSER, Professor Robert Darko Osei, said, "The use of gold for reserves poses some risk given the drop in gold prices on the international market."

He explained that while the Bank of Ghana's gold accumulation strategy has strengthened the country's reserve position, fluctuations in international gold prices remain a key vulnerability that policymakers must closely monitor.

Professor Osei also argued that the country's recent success in reducing inflation has come at a significant cost to the central bank.

According to him, "The fiscal consolidation and monetary sterilization have helped to contain inflation, but this has come to Bank of Ghana at a very high cost."

He warned that the current policy mix should not become a permanent approach to inflation management.

"This approach is certainly not the long-term solution to inflation considering its implications on the Central Bank's finances," he stated.

Meanwhile, the economist cautioned against pushing inflation excessively below Ghana's medium-term target, noting that "The medium-term inflation rate is 8 ± 2 percent; efforts to reduce inflation below this optimal rate could have financial and employment implications."

Professor Osei further observed that recent developments on the global energy market present fresh inflationary risks for Ghana.

He noted that "The recent increase in oil prices has implications for inflation expectations and prices," warning that higher fuel costs could reverse some of the gains made in bringing inflation under control.

His remarks come as policymakers continue to assess the country's macroeconomic outlook after the presentation of the Mid-Year Budget Review, with analysts closely watching the sustainability of inflation, reserve management, and broader fiscal reforms.