BoG governor: Government must not halt gold for oil policy
The implementation of the gold for oil policy (G4O) is said to have contributed significantly to Ghana’s economic stability in recent times
The governor of the Bank of Ghana (BoG)is advocating for a continuous implementation of the gold for oil policy.
The implementation of the gold for oil policy (G4O) is said to have contributed significantly to Ghana’s economic stability in recent times.
Introduced in November 2022, the policy seeks to allow the government to pay for imported oil products with gold, in a direct barter with gold purchased by the central bank.
The move is an intervention to help stabilise prices of fuel products, as well as reduce pressure on Ghana’s foreign exchange, as the direct gold barter will be the mode of paying for imported oil instead of depleting the foreign exchange reserve.
Appearing before the Public Account Committee of Parliament of Monday (8 April) Addison described the policy as very innovative.
“It is a programme that we recommend to continue because it helped us in the period of crisis. We only want to make sure that this is done by a commercial bank so that we can have time to focus on our operations as a central bank,” he said.
“So this is the discussion that we are holding going forward but the ability to be able to exchange our natural resource directly for oil when oil prices get out of hand, we think that it is a very innovative programme.”
Addison added “So it is really about the central bank spreading itself too thin by trying to add gold for oil also into our business but we are fully focused on buying gold to build our reserves.”
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