Ghana’s FX, gold reserve strategy carries high fiscal cost – S&P Global

29, GNA – Ghana’s strategy of accumulating foreign exchange (FX) reserves and gold carries a high fiscal cost that could erode recent improvements in its public finances, S&P Global, an international credit rating agency, has said.

The agency, in a report published on its website on Ghana’s macroeconomic conditions, said although the gold sector was driving reserve accumulation, the implementation of the Ghana Accelerated National Reserve Accumulation Policy (GANRAP) would require the Government to incur significant local currency costs.

The agency said exchange rate fluctuations could have a material effect on Ghana’s debt-to-GDP ratio.