A senior finance lecturer at the University of Ghana Business School, Dr. Benjamin Amoah, has expressed confidence in the continued strengthening of the Ghanaian cedi against the US dollar, attributing it largely to the Bank of Ghana’s ongoing gold purchase program.
According to Dr. Amoah, the central bank’s strategy to acquire gold as part of its reserve management is sending a strong signal to investors, indicating a shift away from over-reliance on the dollar.
This, he believes, is bolstering investor confidence and contributing to the relative stability of the local currency.
“The stability of the cedi can be partly credited to macroeconomic improvements,” Dr. Amoah stated, “but more importantly, the global dollar is currently experiencing some difficulties. In such a setting, the cedi becomes more attractive, especially with Ghana’s strategic gold acquisitions,” he explained.
He emphasized that building reserves with gold is a historically stable and safe-haven asset, rather than the dollar, which is currently under pressure internationally, positions Ghana as a more resilient economy.
“If you have a central bank that is consistently increasing its gold holdings, it provides assurance to investors that your reserves are sound and not vulnerable to dollar volatility,” he added.
Dr. Amoah concluded that in the current international currency environment, where investors are seeking more stable options, the Bank of Ghana’s move to increase its gold tonnage makes the cedi a more attractive and safer investment currency.
Read More @ ATLFMNEWS.COM
Source: Comfort Sweety Hayford/ATLFMNEWS
