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“You’re bleeding!” Bawumia hits back at critics of gold for oil policy

The gold for oil policy aims to allow the government to pay for imported petroleum products using gold, in direct barters for stocks purchased by the Bank of Ghana

Vice-President Mahamudu Bawumia has rubbished claims suggesting that Ghana does not have enough gold to sustain the “gold for oil” scheme.

The policy is designed to allow the government to pay for imported petroleum products with gold in direct barter arrangements, using gold purchased by the Bank of Ghana.

The policy aims to help stabilise prices of fuel products, as well as reduce pressure on Ghana’s foreign exchange, because direct gold barters will be the modus for paying for imported oil, which will help guard against depleting the country’s foreign exchange reserves.

Policy draws criticism

Some experts, including the former chief executive of the National Petroleum Authority (NPA) Alex Mould, have described the policy as needless.

However, reacting to the development at the commissioning of the new head office for the Bulk Oil Storage and Transportation (BOST) in Accra on Wednesday (15 March 2023), Dr Bawumia said: “There are people who are very disappointed the policy is working, but bleeding is allowed.

“We have to understand that the prices of fuel will go up and come down, but what we expect to see under the gold for oil policy is more stability in the pricing and also savings in foreign exchange,” Bawumia said.

“There is more to come. This is the third month of the operation of the policy, just the third month. Some people said, ‘It will not work. Ghana does not have enough gold.’

‘’How can you say that? We have been mining this gold for 200 years, they keep taking it out, and ‘it cannot work’?” Bawumia asked.

Listen to Vice-President Bawumia in the audio clip attached below:

 

Reporting by Fred Dzakpata in Accra

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