As geopolitical tensions rise inexorably with conflict in the Middle East threatening to destabilise global energy markets and investor sentiment, the Bank of Ghana is reinforcing its buffers.
In fact, Governor Johnson P. Asiama said the country is better-positioned today to withstand external shocks – citing an improved reserve position, a disinflationary trend and sustained fiscal reforms under the IMF-supported programme.
He gave this reassurance amid growing concerns about economic ripple-effects from the Iran-Israel conflict.
Dr. Asiama said the Bank of Ghana is closely monitoring the situation and its potential impact on global energy prices, supply chains and capital flows.
The central bank’s strategy to shield the economy includes prudent foreign exchange management, a more disciplined fiscal path and robust monetary policy aimed at stabilising inflation and anchoring expectations.
Foreign reserves have improved following tighter currency management and better alignment between FX demand and real sector transactions. Gross International Reserves (GIR) amounted to US$10.7billion in April 2025, equivalent to 4.7 months of goods and services imports.
The bank’s external sector outlook remains favourable, largely anchored on expectations of increased gold and cocoa export receipts as well as inflows from remittances.
Additionally, the Bank of Ghana has adopted a market-oriented exchange rate framework that relies on improved auction mechanisms and closer surveillance of forex activity.
These measures have helped reduce speculative pressures and allowed the cedi to respond more organically to economic fundamentals.
In recent months, the economy has seen a steady deceleration in inflation – with headline inflation falling from over 50 percent at its peak in 2022 to low double digits in early 2025. Currently, consumer inflation sits at 18.4 percent as of May this year (2025).
This, combined with positive real interest rates and stronger remittance and export inflows, has created what the central bank describes as a more resilient economic base.
Global markets have been jittery over fears that the Iran–Israel conflict could disrupt oil flows, raise transport costs and trigger capital flight from emerging markets.
