Ghanaian parliamentarian Gideon Boako calls for using gold to reduce dependence on the dollar
Gideon Boako, a member of Ghana's parliament representing the Tano North constituency, said the country should strategically use its gold mining resources to reduce excessive dependence on the US dollar and strengthen economic sovereignty. MyJoyOnline reports.
Gold as a reserve asset
According to Boako, Ghana's status as a major gold producer gives the country an opportunity to turn part of its natural resources into a strategic reserve asset. He believes that accumulating locally mined gold could provide additional protection against external shocks and periods of foreign currency shortages.
Boako noted that countries are increasingly reassessing the risks of holding a significant share of their reserves in foreign currencies. In his view, gold can be a tool for protection against excessive dependence on any single reserve currency.
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Preserving value in the economy
The parliamentarian stressed that Ghana's gold strategy should go beyond traditional mining and exports and involve retaining a larger share of gold's value within the national economy.
In Boako's view, directing locally mined gold into reserves could strengthen the country's international reserves, support the stability of the Ghanaian cedi, and reduce the need for excessive external borrowing. He also said that Ghana's experience could serve as an example for other commodity-producing economies, as such an approach, according to him, can reduce the cost of external loans, mitigate currency crises, and retain resource value within the country.
