Ghana loses more than $3b in revenue as commodity prices fall – Wampah

The Governor of the Bank of Ghana, Dr. Henry Kofi Wampah says Ghana has lost more than $3 billion in revenues as a result of fall in commodity prices on the world market.

Speaking as a panelist at the recently held IMF-World Bank Annual Meetings in Lima, Peru, he said monetary policy in low, and lower-middle income countries faces important challenges, including exogenous shocks that can hit the country’s reserves and lead to volatile exchange rates.

“Ghana’s economy has indeed been hit hard by the falling commodity prices,” he said.

“Three commodities form 80 per cent of exports; gold, cocoa, and oil, therefore the price shocks have had a significant effect on the country’s reserves and accelerated volatility in some cases,” he said.

Dr. Wampah added, “for example, between 2012 and now, gold shocks have led to a loss of more than $2 billion in revenue, while shocks in cocoa prices have resulted in more than $1 billion in revenue. These fluctuations complicate monetary policy implementation.”

By Emmanuel K. Dogbevi