ACCRA, July 22 (Xinhua) — Ghana’s central bank said on Wednesday that the country’s economy remains resilient despite ongoing geopolitical tensions.
The increased uncertainties from geopolitical tensions and rising inflation are likely to lead to stricter lending conditions, which could negatively affect emerging economies like Ghana, Bank of Ghana Governor Johnson Asiama said at the press briefing after the latest Monetary Policy Committee meeting.
“Ghana’s headline inflation is projected to rise gradually into the target band (between 6 percent and 10 percent). A potential upward adjustment in utility tariffs, together with escalating geopolitical tensions in the Middle East and the associated increase in crude oil prices, present upside risks to the inflation outlook,” Asiama said.
The governor said the prolonged lockdown of the Strait of Hormuz, resulting in higher crude oil prices, would not significantly impact the economy due to the strong fiscal consolidation by the government and the appropriately calibrated monetary policy stance of the central bank.
“Our reserves won’t be depleted. The trade balance is in surplus; the capital account is also in surplus, and we have many other avenues through which to rake in more foreign exchange should the situation in the Middle East remain permanent,” Asiama said. Enditem