A senior lecturer at the University of Professional Studies, Accra (UPSA), Dr. Eric Boachie Yiadom, has called on the government to strategically leverage the current surge in global gold prices to stabilize the Ghana cedi and strengthen the country’s economy.
Gold prices have climbed to historic levels, hovering around $5,000 per ounce, a development Dr. Yiadom believes presents Ghana with a rare opportunity to improve its foreign reserves and enhance macroeconomic resilience.
Speaking in an interview with Joy Business, Dr. Yiadom said higher gold prices could significantly support the country’s reserve accumulation, which plays a critical role in maintaining currency stability.
“The continuous rise in gold prices provides Ghana with an opportunity to build a stronger reserve base, and that has direct implications for the strength of the cedi,” he explained.
He noted that global trends often show an inverse relationship between gold prices and the U.S. dollar, pointing out that strong performance in the gold market is frequently accompanied by weakness in the dollar.
“Historically, anytime gold performs well on the international market, the U.S. dollar tends to face some pressure. This creates room for gold-producing countries like Ghana to benefit, if the opportunity is managed properly,” he said.
However, Dr. Yiadom cautioned that currency movements and commodity cycles can be unpredictable, warning that gains from gold must be managed with long-term planning to avoid unintended economic consequences.
“When conditions shift and the dollar strengthens again, it doesn’t necessarily mean countries are better off. These fluctuations come with their own risks, which is why strategic investment decisions are critical,” he noted.
He further argued that increased focus on gold could help cushion the economy against volatility in other major export commodities, particularly cocoa, which has traditionally supported Ghana’s foreign exchange inflows.
“If gold prices rise relative to commodities like cocoa, and we position ourselves well, it can help improve the cedi’s performance against major currencies,” Dr. Yiadom added.
He therefore urged government to adopt a deliberate and forward-looking strategy in managing gold revenues and investments, stressing that the current price rally should be used to secure long-term economic benefits rather than short-term gains.
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