The Ghanaian government is working on a new policy to buy oil products with gold instead of US dollars.
This was said by Ghana’s Vice President, Mahmudhu Bawumia, in a statement. He said that the government’s move is aimed at dealing with demand for dollars as well as dwindling foreign currency reserves that are weakening the local economy. And domestic expenditure is also increasing.
of a foreign news agency According to the report Neha explained that the government’s move is aimed at dealing with dwindling foreign exchange reserves amid rising inflation and a weakening local currency.
Ghana’s gross international reserves stood at about $6.6 billion at the end of September 2022, enough to cover less than three months of imports. This is down from about $9.7 billion at the end of last year, according to the Ghanaian government.
In his statement, Bawumia said that if implemented as planned for the first quarter of 2023, the new policy will fundamentally change our balance of payments and significantly reduce the continued depreciation of our currency. .
He explained that using gold would prevent the exchange rate from directly affecting fuel or utility prices as domestic sellers would no longer need foreign exchange to import oil products. The barter of gold for oil represents a major structural change, he added.
Ghana produces crude oil but has relied on imports of refined oil products since its only refinery closed after an explosion in 2017.
Bawumia’s announcement was posted after Finance Minister Ken Ofori Atta announced spending cuts and revenue raising measures to tackle the escalating debt crisis.