Consolidate gold for oil policy, it’s been a game changer, says economist
The policy introduced in November 2022, is to allow the government to pay for imported oil products with gold, in a direct barter with gold purchased by the central bank
A development economist with the University of Ghana Dr Hayford Mensah Ayerakwa has described the gold for oil policy as a game changer in Ghana’s economy.
The policy introduced in November 2022, is 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.
Since its inception, the Bank of Ghana has purchased 17.89 tons of gold, equivalent to US$1.14 billion. This is more than double the level of the central bank’s gold reserves and well ahead of the initial target of the programme.
Reacting to President Akufo-Addo’s State of the Nation Address on the Asaase Breakfast Show Wednesday (28 February), Ayerakwa called on the government to consolidate the policy.
“I think that if we are talking about gold for oil policy, this for me has been one of the game changers and as a country, we should find a way of consolidating this to get the best out of it,” Ayerakwa said.
Listen to Dr Hayford Mensah Ayerakwa in the attached audio clip below:
Reporting by Fred Dzakpata in Accra
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