The Vice President of the Republic, H.E Dr. Mahamudu Bawumia has disclosed that government is in talks over a new policy where Ghana will use gold to buy oil products instead of US dollars.
In a post on his Facebook page, the Vice President said the demand for foreign exchange by oil importers in the face of dwindling foreign exchange reserves results in the depreciation of the cedi and increases in the cost of living with higher prices for fuel, transportation, utilities, etc.
“To address this challenge, Government is negotiating a new policy regime where our gold (rather than our US dollar reserves) will be used to buy oil products. The barter of sustainably mined gold for oil is one of the most important economic policy changes in Ghana since independence.
“If we implement it as envisioned, it will fundamentally change our balance of payments and significantly reduce the persistent depreciation of our currency with its associated increases in fuel, electricity, water, transport, and food prices,” the Vice President said.
According to him, government is expecting that the new ‘gold for imported oil’ policy will be fully operational by the end of the first quarter of 2023.
“We expect this new framework to be fully operational by the end of the first quarter of 2023,” Dr. Bawumia noted.