Dr. Frank Bannor, Development Economist and Senior Research Fellow at the Institute of Economic Research and Public Policy (IERPP), has advised African countries to diversify their reserves into gold rather than relying on US dollar-denominated assets.
Speaking in an interview with Sputnik Africa News, Dr. Bannor noted that even the larger Western economies are gradually moving away from dollar-based assets toward gold.
“If the so-called bigger economies, those in the northern hemisphere, are diversifying, moving away from the dollar to gold-denominated assets, then how much more African countries, who are highly susceptible not just to sanctions, but also to visa restrictions and other financial constraints?” he asked.
Dr. Bannor, who is also a lecturer at the School of Public Service and Governance (SPSG), GIMPA, emphasized that dollar-denominated investments are increasingly risky amid current global geopolitical uncertainties. “It clearly points to the picture that diversifying into a dollar-denominated investment or asset is not the right way to go,” he said.
According to him, building up gold reserves offers African nations a highly liquid and reliable financial resource. “Once you have your gold reserves, and in times of crisis, given the fact that the demand for gold has always been there, people are ready to use it.
“You can even undertake barter trade. Ghana, for instance, has in the past engaged in what we call gold-for-oil transactions, whereby gold could be used to purchase oil,” Dr. Bannor explained.
In a related development, the Institute for Economic Research and Policy Planning (IERPP) will next week host a thought-provoking lecture examining the influence of centre-right ideologies on Ghana’s political scene.
The session, part of the IERPP Lecture Series, is scheduled for Monday, 2nd March 2026, at 4:00 pm at the British Council, Accra. It aims to provide insights into the country’s evolving political and policy environment.
Professor Isaac Boadi, the Executive Director of the Institute, who announced the lecture, said it would focus on the historical and contemporary role of centre-right parties and policies in shaping governance, economic strategies, and social development in Ghana.
He indicated that participants would receive an in-depth analysis of how these political philosophies have influenced decision-making processes and electoral dynamics across the country.
Centre-right politics, often associated with fiscal responsibility, support for private enterprise, and a cautious approach to social change, have had a lasting impact on Ghana’s democracy.
In the Ghanaian context, parties aligned with centre-right principles, such as the New Patriotic Party (NPP), have historically emphasized economic liberalization, private-sector-led development, and policies to improve infrastructure and create jobs. These approaches have influenced how successive governments have tackled economic challenges, trade, and investment.
Understanding centre-right politics is particularly relevant today as Ghana faces complex economic issues, including managing inflation, boosting business growth, and ensuring sustainable development.
By examining the ideas and strategies behind these political philosophies, students, academics, and policymakers can better appreciate the forces shaping Ghana’s political decisions and national priorities.
The development economist stressed that gold’s liquidity and universal acceptance make it the most practical option for African economies. “In terms of liquidity, gold is highly liquid in all senses because people are ready to accept it as a form of payment. It is clearly the right option to go,” he opined.
Dr. Bannor further urged African governments to rethink their foreign reserve strategies. “My position is that I would advise countries, in particular African countries, to diversify their reserves into gold rather than keeping US dollar-denominated assets,” he stated.
