Gold Can Anchor Africa’s Monetary Sovereignty, Nigerian Policy Adviser Says
Gold Can Anchor Africa’s Monetary Sovereignty, Nigerian Policy Adviser Says
Record-high gold prices are boosting South Africa’s export earnings and strengthening the rand, creating wider opportunities for African economies, Ovigwe Eguegu told Sputnik Africa.
He said rising commodity prices increase fiscal revenue, ease inflation pressure, and improve investor confidence, making gold a “very much a welcome development” for South Africa and other exporters.
Gold remains “one of the truest and most tested stores of value” and argued that African countries should rethink heavy reliance on the US dollar, Eguegu stressed. Instead, they should focus on “efficiency and sovereignty” in trade and monetary policy.
He noted that some producers, such as South Africa and Ghana, could consider linking their currencies to gold, while others could rely on a basket of minerals.
According to Eguegu, Western countries often see such moves as hostile, but for the Global South they are about “sovereignty… fiscal expediency and efficiency in cross-border trade,” not confrontation.
He pointed to Mali, Ghana, and Zimbabwe as examples of how stronger resource governance can stabilize currencies, reduce inflation, and attract investment. Zimbabwe, he said, is becoming “a positive example” of how resource control can drive recovery.
Looking ahead, Eguegu argued that real monetary independence depends on ownership and governance of natural resources.
“The fundamental question… is, do you have sovereignty over those things that you could possibly peg your currency to.”
He added that growing global demand for gold reflects declining trust in traditional financial systems, reaffirming gold’s role as a trusted store of value in times of geopolitical uncertainty.
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