Dr. Johnson Asiama, Governor of the Bank of Ghana (BoG), has cautioned that lower global oil prices, following a ceasefire in the Middle East, do not eliminate Ghana's economic risks. He stated this at the Bank for International Settlements (BIS) Roundtable of Governors in Basel, Switzerland, on June 27, 2026. The Governor warned against a false sense of security for Ghana and other emerging economies.
The easing of crude oil prices offers some relief, but significant global economic challenges remain. Dr. Asiama identified tighter global financial conditions, the strength of the US dollar, and ongoing international economic uncertainty as major risks to Ghana. These factors threaten economic stability despite recent positive developments in the oil market. Central banks must maintain credible policy frameworks and adapt as risks change.
This caution comes amidst Ghana's broader economic narrative of resilience and reform. Inflation has significantly decreased from over 54% in 2022 to 3.7% in May 2026. The country also records a primary fiscal surplus. Ghana's gross international reserves reached US$14.4 billion in May 2026. These macroeconomic gains reflect prudent economic management, domestic resource mobilization, and policy reforms.
Dr. Asiama stressed that the recent Middle East conflict demonstrated the rapid changes in external conditions. He advised central banks to keep flexible policy frameworks. His remarks provide context for the Bank of Ghana’s upcoming Monetary Policy Committee meeting. The committee will meet from July 20 to July 22, 2026, to decide on the policy rate, which currently stands at 14%.
Ghana is also increasingly relying on domestic borrowing to fund infrastructure projects. This shift occurs because external financing has become more expensive and less predictable. Governments use domestic capital markets to reduce exchange rate exposure and diversify funding sources. This strategy also mobilizes domestic savings for development.
The Governor warned this increased reliance on domestic borrowing shifts risks into local financial systems. He advocated for deeper, longer-dated, and more diversified domestic debt markets. This preventative measure ensures that today’s solutions do not become tomorrow’s vulnerabilities. Ghana's debt restructuring programme, under the IMF Extended Credit Facility, offers lessons for other African economies. It focuses on fiscal consolidation and institutional reforms to restore debt sustainability.
Decision-makers will closely monitor these external risks as the Monetary Policy Committee convenes. The impact of the strong US dollar and global financial conditions on Ghana's financial sector will be key. The effectiveness of Ghana's shift to domestic borrowing will also be a critical area of focus. Managing these risks is crucial for sustained economic stability and growth.