Financial analyst Joe Jackson says Ghana’s Goldbod initiative holds the potential to sustain the cedi’s appreciation against the US dollar.
Also Read
He attributes the recent currency rebound to rising global demand for gold and strategic policy moves at home.
“Globally, investors are turning to gold as a safe haven. Over the last eight years, gold has outperformed the dollar,” Jackson said during a discussion on TV3’s KeyPoints on May 17. “I’ve always said that gold is one way we’re going to save this country.”
Jackson praised the government’s Gold4Oil programme, noting that despite its flaws, it delivered on its main objective, relieving pressure on the cedi by reducing the country’s fuel import bill.
“I applauded the Gold Reserve and Gold4Oil programmes. The Gold4Oil, however corrupt, delivered. Goldbod will also work if the Governor sticks with it. You’ll see the cedi appreciate,” he stated.
He linked the cedi’s recent strength not only to domestic policies but also to external factors, including a weakening US dollar. Jackson cited recent policies by former US President Donald Trump, such as tariff cuts, as contributing to a global dollar slide.
“The Trump tariff fall has caused the dollar to depreciate against major currencies,” he explained. “That means oil prices are dropping, which eases pressure on the cedi, especially as we import over $400 million in fuel monthly”.
He added that international rating agencies recently downgraded the US credit rating, further weakening the dollar and aligning global conditions in Ghana’s favour. As a result, local fuel prices are expected to fall.
Also speaking on the programme, MP Rockson Dafeamekpor praised Finance Minister Dr. Cassiel Ato Forson and Bank of Ghana Governor Dr. Maxwell Opoku-Afari for their roles in strengthening the cedi.
“They deserve credit for the innovative measures they’ve introduced, which are clearly bearing fruit,” Dafeamekpor said.
