Fitch warns gold price drop could hit Ghana’s reserves
Global credit rating agency Fitch Ratings is warning that a sharp decline in global gold prices triggered by a return towards more conventional trade policies in the US and/or the resolution of major global geopolitical flashpoints would quickly erode Ghana’s international reserves.
According to the UK-based firm, the central bank would in this scenario struggle to maintain the cedi at current levels, leading to a renewed sell-off.
“This would keep inflation elevated, lead to a weakening in consumer and investor sentiment and prompt the central bank to keep interest rates higher for longer,” it added.
This was captured as part of its downside risk forecast.
On the upside risk, it said a further appreciation of the cedi would bring inflation down more quickly than “we currently project.”
This would support stronger private consumption and prompt the Bank of Ghana to ease monetary policy more rapidly, which would stimulate credit uptake.
It pointed out that the contribution of government consumption will be negative in 2025.
This is because the government pursues fiscal consolidation in line with Ghana’s International Monetary Fund program.
The report said a stronger exchange rate amid elevated gold prices will support the disinflation process, ease pressure on household budgets, and support consumer spending in the quarters ahead.
Building collapse kills 2, injures 3 in Cape Coast
A two-story building near the London Bridge area in Cape Coast collapsed early Saturday during heavy rain, killing two people and seriously injuring three others.
Emergency teams from the Ghana Police Service, the National Disaster Management Organization (NADMO), and the Ghana National Fire Service responded swiftly after receiving a distress call around 5:30 a.m.
Rescue workers spent several hours digging through rubble, using both manual tools and heavy machinery, to reach the victims trapped beneath the collapsed structure.
Speaking to the media, Police spokesperson noted: “By the time we arrived, the building had completely crumbled. We worked alongside NADMO and Fire Service officers to recover the victims.”
Three survivors were pulled from the wreckage and transported to the Cape Coast Teaching Hospital, where they are currently in stable condition and responding to treatment.
The other two victims were pronounced dead, one at the scene and the other after being recovered around 2:40 p.m. Authorities have not yet released their identities, pending notification of their families.
The rescue effort was made even more difficult by continuous rainfall and the fragile condition of nearby structures. Officials said the collapse has raised concerns about additional buildings in the vicinity that may also be at risk.
As a precaution, another nearby building also compromised by years of weather damage and recent rains has been evacuated and sealed off. Authorities say it will likely be demolished to prevent a similar disaster.
Shaken residents expressed grief and frustration, urging local authorities to take immediate action.
“We’ve been worried about that building for years. Now we’re afraid there are others like it just waiting to fall,” said one neighbor who witnessed the collapse.
