The geopolitical landscape in 2022 was
drastically altered by the Russian-Ukraine war,
drawing global attention to its ripple effects
on economies and the oil industry. The conflict
triggered a surge in crude oil and refined
products prices as global markets responded
to supply chain disruptions amid the recovery
in demand following the covid pandemic.
As international oil benchmarks soared, so
did foreign exchange (FX) demand in the
emerging markets, intensifying economic
strain on import dependent economies such
as Ghana. The country, which lacks domestic
refining capacity for crude oil, found itself
vulnerable to these global shocks; with the
country’s oil import bill ballooning from $240
million to $400 million per month and placing
immense pressure on its already fragile FX
reserves.