By Issah Mohammed, GNA
Accra, Nov. 9, GNA – The Institute of Economic Affairs (IEA) says Ghana’s proposed partnership with BRICS could create opportunities to reduce its reliance on third-party currencies in international trade and lower foreign-exchange conversion costs.
Greater engagement with BRICS economies could facilitate the use of local currencies in trade, potentially easing pressure on the country’s foreign-exchange reserves, and limiting exposure to exchange-rate volatility.
The IEA said this in a statement issued on Monday in support of the Government’s decision to pursue BRICS partner-country status.
It said alternative settlement arrangements could also improve the competitiveness of Ghanaian businesses trading with BRICS economies.
“Greater engagement with BRICS could also strengthen Ghana’s financial standing by expanding avenues for the use of local currencies in trade, reducing dependence on third-party currencies, and lowering foreign-exchange conversion costs,” the IEA said.
However, it noted that the benefits would depend on effective payment mechanisms and currency convertibility.
The statement said Ghana’s proposed partner-country status offered a platform to advance alternative settlement arrangements in support of the country’s trade and broader economic interests.
The partnership should expand Ghana’s economic options rather than replace its existing sources of finance and international cooperation, it said.
The statement urged the Government to establish the necessary institutional and policy mechanisms to ensure that the country derived maximum developmental benefits from the proposed engagement.
The term BRICS originally referred to a group of emerging economies experiencing rapid economic growth and widely regarded as potential dominant players in the global economy of the 21st century.
The acronym, derived from the names of its founding members – Brazil, Russia, India, China, and South Africa -has since evolved into the name of a formal intergovernmental grouping.
BRICS seeks to promote greater economic cooperation, political dialogue, and geopolitical coordination among its member states, while strengthening their collective influence in global affairs.
It has established a “partner countries” category, which Ghana is seeking to join. Countries already in the category included Belarus, Bolivia, Kazakhstan, Cuba, Malaysia, Nigeria, Thailand, Uganda, Uzbekistan, and Vietnam.
GNA
Edited by Agnes Boye-Doe
9 Nov. 2026
Reporter: Issah Mohammed