Policy Analyst and Economist, Dr. Peter Terkper, has cautioned that Ghana could face significant economic challenges should global gold prices decline, warning that the country’s heavy dependence on gold exposes it to serious financial risk.
Speaking on ABC in the Morning, Dr. Terkper noted that Ghana’s economy remains largely reliant on gold, making it vulnerable to fluctuations in the global commodities market.
“If gold prices fall, Ghana will be in a very big trouble because the economy of Ghana is largely dependent on gold,” he stated.
Dr. Terkper made the remarks while commenting on the Bank of Ghana’s gold reserves diversification initiative, calling on the central bank to adopt a more localized approach to ensure broader national benefits.
According to him, Ghana’s economy is currently dominated by foreign participation, a situation he believes limits the direct impact of such initiatives on ordinary citizens. He argued that prioritising local involvement would enable Ghanaians to benefit more meaningfully from the gold diversification programme.
“If the Bank of Ghana wants the economy to benefit, the diversification must be localized,” he stressed.
The policy analyst further urged that the initiative be implemented as a national policy rather than being treated as a political manifesto promise. He said such an approach would help insulate the programme from partisan interests and ensure long-term benefits for the country.
Dr. Terkper also emphasized the need for strong political will to guarantee the successful implementation of the diversification strategy and to extend its impact across various sectors of the economy.
He maintained that without deliberate efforts to deepen local participation and reduce over-reliance on gold, Ghana risks severe economic consequences in the event of a downturn in global gold prices.
