Strategy of accumulating foreign reserves, gold carries high fiscal cost – S&P Global

According to the US-based rating agency, although the gold sector is fueling the accumulation of reserves, implementing Ghana Accelerated National Reserves Accumulation Program (GANRAP) will cause the government to incur high local currency costs.

Ghana's strategy of accumulating both foreign reserves and gold carries a high fiscal cost, which could erode the recent improvements to its public finances, S&P Global has warned.

However, we anticipate that external shocks, such as the rise in international fuel prices stemming from the Middle East war, will partially offset the expected fiscal benefits of these changes”.