
Audio By Carbonatix
Economist and political risk specialist Dr Theo Acheampong, now Technical Advisor at the Ministry of Finance, says Ghana’s gold windfall presents a clear opportunity to build economic strength — and the data shows why.
Speaking on Joy News’ PM Express on Monday, he pointed to strong numbers linking gold performance to Ghana’s external buffers.
“Of course, gold has been at historical all-time highs,” he said regarding government's Reserve accumulation policy.
He noted that forecasts from major investment banks, multilateral institutions and internal projections at the Ministry all suggest the favourable trend could continue.
“Everything indicates that you’re likely to still have this tail right wind that you can actually leverage on for the next two to three years.”
For him, the critical question is how Ghana uses the moment.
“So the idea really is that okay, what do you do to actually take advantage of the potential high prices that we have seen in relative historical terms, to build a buffer, or, as we put it, to build a war chest.”
He was quick to clarify the purpose of such a build-up.
“Now you’re building the war chest, not the reserves. It is not a means or an end in and of itself. It’s a means to an end.”
That end, he explained, is macroeconomic stability.
“The end really being that you’re able to support your currency, support your economy, and ultimately, right translate that into jobs.”
Dr Acheampong said the relationship between gold and Ghana’s external strength is not speculative. It is supported by analysis.
“If you look at the data, and then I’ve been, we’ve been doing some sort of work right around this.”
He outlined the variables examined.
“So you can actually take the gold data, take our gross international reserves, take inflation, take exchange rate, and then do some sort of correlation and even causality analysis.”
He then broke down the key finding.
“Just to be maybe a little technical and try to explain the relationship between gold and our gross international reserves, the correlation there is actually positive.”
He quantified it.
“The coefficient is about 0.64.”
That figure, he suggested, is significant. It shows that as gold performance strengthens, Ghana’s gross international reserves tend to improve as well.
His argument rests on this positive correlation. High gold prices are not just headline gains. They can translate into stronger reserves, he said.
Stronger reserves can help stabilise the currency. And currency stability can ease inflationary pressure and support economic growth.
Latest Stories
-
Successful conviction secured for illegal fish processing operation in Watford
5 minutes -
Bowen: Ceasefire means respite for civilians, but it might not last long
6 minutes -
Ofori-Atta not yet formally notified of any charges – Frank Davies
6 minutes -
Asanko Gold supports road rehabilitation to ease transport challenges in Amansie West
18 minutes -
Serial killer pleads guilty to eight murders in case that haunted Long Island, New York
22 minutes -
NPP used Bosomtwe road as ‘election machine’ but failed to dedicate funds for its completion – Dr Amoakohene
28 minutes -
CSOs warns of contraceptive crisis as $500k UNFPA supplies stall at port
33 minutes -
Africa’s youth bulge a ‘defining moment’ that requires urgent action – NYA CEO Osman Ayariga
41 minutes -
No looming power crisis; Ghana’s electricity supply remains stable – Energy Ministry PRO insists
56 minutes -
Mahama should reset his stance on LGBTQ -Clinton Baffour
1 hour -
Rising sachet water costs should spark a bigger conversation on plastic waste
1 hour -
Two-week ceasefire takes effect as US and Iran prepare for talks in Pakistan
1 hour -
Dr. Amoakohene debunks claims Sewua and other Agenda 111 hospitals are ready for operationalisation
1 hour -
AMA rolls out new shift system for street sweepers to improve sanitation
1 hour -
Focus on capacity, not connections in Damang lease decision – Paa Kwesi Schandorf
2 hours