William Kwesi Peprah, Associate Professor of Finance at Andrews University in Michigan, has cautioned that a looming shutdown of the United States federal government could trigger ripple effects across global markets, potentially weakening the dollar, raising global interest rates, and complicating Ghana’s already fragile trade balance.
Speaking on the Asaase Breakfast Show on Thursday, 2 October, Prof Peprah explained how Ghana could be affected directly.
“Dollar inflows into Ghana may drop, and when that happens, our balance of payments takes a hit.
“Exports may face delays at US ports, and even remittances from Ghanaians working in the US could slow,” he said.
He also highlighted the broader economic repercussions, noting that uncertainty in Washington sends signals to investors worldwide.
“Already, it sends some signal of uncertainties in the global market. Once investors see uncertainties, they wait.
“This may lead to a weakening of the dollar, and eventually a global increase in interest rates.
“The cost of funds globally will become very expensive,” Prof Peprah added.
With the United States being a major trading partner and source of remittances, Ghana could experience slowed exports, reduced foreign currency inflows, and higher borrowing costs, showing how political gridlock in one of the world’s largest economies can have tangible impacts across continents.
Source:Lovinghananews.com
