The global financial system is undergoing rapid change.

Advances in financial technology (FinTech), rising geopolitical tensions, and growing economic rivalries are reshaping how value is stored and exchanged.

Increasingly, fiat currencies are losing their appeal as long-term stores of value, as people and nations explore alternatives such as cryptocurrencies and commodity-backed assets.

Although it is too early to declare the end of the fiat system, global developments suggest that its dominance, particularly that of the US dollar, may face serious challenges in the future.

The ongoing global trade wars and geopolitical realignments point to a gradual erosion of the petrodollar system. Countries such as Iran have already shown willingness to price crude oil outside the US dollar framework.

Further reinforcing this shift is the growing influence of the BRICS nations Brazil, Russia, India, China, and South Africa. These countries are developing an alternative payment system that reduces dependence on the dollar.

More importantly, discussions around a proposed BRICS currency, reportedly backed by gold, signal a renewed global interest in asset-backed monetary systems.

Against this backdrop, Ghana’s position as one of Africa’s leading gold producers presents a unique opportunity. For many years, the country failed to adequately protect and leverage its gold and other natural resources to support macroeconomic stability.

However, the recent establishment of the Ghana Gold Board (GoldBod) represents a crucial step toward better management of this strategic asset.

To further strengthen the cedi, the GoldBod, working closely with the Ministry of Finance and the Bank of Ghana, should consider licensing selected financial institutions, such as commercial banks and fund management companies, to purchase and hold gold on behalf of customers.

This would provide citizens with a safe, regulated avenue to store value in gold.

Such a policy could significantly reduce the speculative demand for foreign currency, particularly the US dollar, which many individuals currently buy and hold as a hedge against cedi depreciation. By redirecting this demand toward gold, pressure on the foreign exchange market would ease, thereby supporting the stability of the cedi.

In addition, this initiative could stimulate the development of Ghana’s commodity and derivatives markets, operating like Treasury bills and government bonds, transparent, regulated, and accessible to the public.

However, any such system must be built on strong regulation, transparency, and accountability.

Ghana can draw important lessons from past experiences, including the collapse of Menzgold, to ensure that public trust is protected and systemic risks are avoided.

As the global financial order evolves, Ghana must position itself strategically. Leveraging gold as a store of value within a properly regulated framework could be a decisive step toward strengthening the cedi, deepening financial markets, and securing long-term economic resilience.

By Evans Webu; Financial Analyst ([email protected])