Economist breaks down how gold supports Ghana’s international reserves

Dr Theo Acheampong has highlighted the technical relationship between Ghana’s gold earnings and its gross international reserves.

“If you look at the data… you can take the gold data, take our gross international reserves, take inflation, take exchange rate, and then do some sort of correlation and even causality right analysis,” he said on Joy News’ PM Express.

“Just to be maybe a little technical and try to explain the relationship between gold and our gross international reserves, the correlation there is actually positive. The coefficient is about 0.64.”

According to Dr Acheampong, this strong positive relationship shows that rising gold prices not only boost reserves but also provide room for economic interventions.

“It’s not just numbers on a page. It’s something that can translate into real support for the currency and for the economy,” he explained.