Middle East war hits Ghana’s wallet, BoG warns energy prices are fuelling inflation and eating into reserves.
Governor of the Bank of Ghana (BoG), Dr Johnson Asiama, has warned that rising global energy prices driven by the escalating Middle East conflict are posing renewed risks to Ghana’s foreign exchange reserves and inflation outlook. Speaking at the opening of the 130th Monetary Policy Committee (MPC) meeting in Accra, he noted that although the economy remains resilient, inflation recorded its first increase since December 2025 due to what he described as “dual channel inflation risks” stemming from domestic energy supply disruptions and external commodity price pressures. He explained that the closure of the Strait of Hormuz had led to sustained increases in global crude oil prices, affecting fuel costs, transport fares, import bills and consumer prices, while also threatening Ghana’s current account and reserve position. Dr Asiama added that although Ghana’s first-quarter 2026 current account surplus exceeded the 2025 figure by US$652 million, prolonged energy price inflation could erode those gains. He said the MPC would assess possible interest rate adjustments to keep inflation expectations anchored and strengthen monetary policy transmission, stressing the need for a strong banking sector capable of supporting credit expansion and economic growth as markets await the committee’s policy rate decision.
