The current financial crisis, following so closely the 2007-2008 food and fuel price shocks, and the expected slowdown of global growth have come at a moment when Ghana is considered more vulnerable than it has been in the recent past. The spike in global food and crude oil prices in 2007-2o08 has raised the country’s current account deficits to worrisome levels. Moreover, inflation is high and rising, and the government’s fiscal position has deteriorated, both for cyclical reasons and because government spending has increased to alleviate the adverse impact of higher commodity prices. This study analyses the nature and extent of the impact of the crisis and identifies the specific channels of transmission, policy implications and possible policy responses. Ghana, having been integrated into the global economy, is not being spared the impact of the financial crisis. Just like other developing countries in the region, the country is becoming increasingly vulnerable, as its current account, fiscal deficit, exchange rate, inflation and debt indicators worsen. The financial crisis is expected to exacerbate an already vulnerable situation and possibly erode the gains of the past decade of strong economic performance.