Accra: The Governor of the Bank of Ghana, Dr. Johnson Pandit Asiama, has cautioned that the ongoing conflict in the Middle East and increasing global energy prices are posing new risks to Ghana's economic recovery, despite recent signs of improved macroeconomic stability.
According to Ghana Web, Dr. Asiama, speaking at the start of the 130th Monetary Policy Committee (MPC) meeting in Accra, highlighted the meaningful progress made since the last MPC meeting in March 2026. However, he warned that worsening global conditions, particularly the prolonged Middle East crisis, could undermine these gains. Dr. Asiama mentioned that the conflict has had visible economic consequences globally, including the closure of the Strait of Hormuz, which has led to a sustained rise in energy prices.
He stated that the International Monetary Fund (IMF) has adjusted its 2026 global growth forecast downward from 3.3% to 3.1%, attributing the revision to the conflict's negative impact on global demand and supply chains. For Ghana, an exporter of commodities but an importer of energy, this external shock is likely to influence fuel prices, transportation costs, import bills, and inflation.
Dr. Asiama reported that inflation in Ghana has increased for the first time since December 2024, with domestic energy supply disruptions and global commodity price pressures persisting. Despite these hurdles, he noted positive developments such as an improved current account position, growing investor confidence, and government efforts to reduce reliance on external borrowing. The Q1 2026 current account surplus surpassed the Q1 2025 figure by approximately US$652 million.
Furthermore, Dr. Asiama highlighted the successful issuance of a seven-year government bond and the resumption of domestic bond issuance as signs of renewed investor confidence. He announced plans for the government to raise US$1 billion through local currency bonds to finance cocoa purchases for the 2026/27 crop season, marking a shift away from dollar-denominated funding and foreign lenders.
On the IMF programme, he shared that a mission visiting Ghana from April 29 to May 15 concluded discussions on the sixth and final review of the Extended Credit Facility (ECF) programme and negotiations for a new 36-month non-financing Policy Coordination Instrument (PCI). He described the PCI as a strategic next step in Ghana's international financial engagement, preserving the benefits of IMF involvement while enhancing national reform ownership and reducing financial dependence on IMF resources.
The new PCI arrangement will focus on maintaining fiscal discipline, ensuring debt sustainability, strengthening monetary policy, and reinforcing financial sector stability. Dr. Asiama added that the MPC meeting discussions would concentrate on inflation risks, interest rate decisions, and measures to fortify the banking sector and support credit growth. He emphasized that these risks, including rising energy prices, inflation expectations, fiscal pressures, and ongoing domestic power challenges, would be central to the week's discussions.