By Jibril Abdul Mumuni, GNA
Accra, Sept. 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 GANRAP seeks to leverage Ghana’s gold resources to strengthen national reserves, support long-term macroeconomic stability, improve confidence in the economy and enhance the country’s capacity to withstand external pressures.
S&P Global estimates that the cost of implementing the programme could amount to between 0.8 per cent and 2.6 per cent of annual Gross Domestic Product (GDP).
It said although the establishment of GoldBod should insulate the Bank of Ghana from losses associated with gold trading, open-market sterilisation operations would continue to carry substantial costs.
“As a result, we expect the Bank of Ghana to remain under pressure,” it said.
S&P Global also estimated that GoldBod’s operational costs would be close to 1.5 per cent of GDP annually while implementing GANRAP.
The agency said public debt could therefore decline more slowly than might be expected based on headline fiscal deficits.
It added that public debt remained susceptible to exchange rate movements, with nearly 41 per cent denominated in foreign currency.
The agency said exchange rate fluctuations could have a material effect on Ghana’s debt-to-GDP ratio.
S&P Global also noted that the Bank of Ghana’s balance sheet had deteriorated substantially, reporting that the central bank recorded an operating loss of US$1.25 billion in 2025, worsening its negative equity position to 6.7 per cent of GDP.
The agency said although the Government had initiated a phased capital restoration programme to recapitalise the central bank through 2032, the exercise would likely require the issuance of additional government debt.
GNA
Edited by Agnes Boye-Doe
29 Sept. 2026
Reporter: Jibril Abdul Mumuni
Email: [email protected]