The Bank of Ghana (BoG) has confirmed that the government’s Gold for Oil policy is advancing as planned to address Ghana’s declining foreign currency.
During a session with the Public Accounts Committee of Parliament, the First Deputy Governor of the BoG, Dr. Maxwell Opoku-Afari, provided an update on the policy.
He explained that this initiative aims to address Ghana’s declining foreign currency reserves and the high demand for dollars from oil importers, which have put pressure on the Cedi and increased living costs.
Furthermore, Dr Opoku-Afari noted that the Gold for Oil policy allows the government to pay for imported oil products directly with gold. According to the government’s G40 Programme Framework from February 3, 2023, there are two payment methods: barter trade or forex obtained by selling gold to a broker.
In addition, under the barter channel, suppliers who accept gold in exchange for petroleum products receive the equivalent amount of gold from the BoG.
Conversely, in the broker channel, the BoG sells gold to a broker, who then provides the necessary forex to cover the cost of the petroleum products.
Dr Opoku-Afari emphasised,
“The Gold for Oil program is on track. The Central Bank’s financial contribution is capped, and no additional funds are added. The program relies on receivables within this cap.”
