Gold for Oil: Bawumia Discloses First Batch of Oil Under Policy Will Arrive In January 2023

• Vice president Dr Mahamudu Bawumia has disclosed that Ghana is making significant progress with plans to import petroleum products with gold
• The vice president said Ghana has made significant progress so far with the first batch of oil under the deal expected in January 2023
• The gold-for-oil barter is government's long-term plan to stem the perennial depreciation of the cedi against the US dollar and other major trading currencies

Vice president Dr Mahamudu Bawumia has disclosed that Ghana has secured a major deal for the start of novel gold-for-oil barter.

The gold-for-oil policy is government's long term strategy to reduce pressure on the Ghana cedi and prevent its perennial depreciation.

The vice president said the first batch of petroleum products under the policy will hit the shores of Ghana early January.

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"I am happy to announce that the Government of Ghana has concluded the arrangements for the operationalization of the Gold for Oil policy.

"Consequently, the first oil products under the policy will be delivered next month (January 2023). My thanks to the Minister for Energy, Minister for Lands and Natural Resources, Governor of the Bank of Ghana, the Chamber of Mines, PMMC and BOST for their leadership in the operationalization of the Government’s Gold for Oil Policy," the vice president announced.

Dr Bawumia made the announced on his Facebook page on Thursday, December 22, 2022.

Already, the Bank of Ghana (BoG) has purchased 26,000 ounces of gold between May and November 2022 from Newmont Africa.

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The purchase is part of the domestic gold purchasing policy aimed at shoring up Ghana’s foreign reserves.

Bawumia Announces Plan By Government To Use Gold To Buy Imported Petroleum Products

Meanwhile, YEN.com.gh has reported in a separate story in November that vice president Dr Mahamudu Bawumia announced plans by the Government of Ghana to pay for imported petroleum products with gold instead of dollars.

The vice president explained that the move will solve the problem of dwindling foreign exchange reserves that puts pressure on the cedi and fuels depreciation.

“Government is negotiating a new policy regime where our gold (rather than our US dollar reserves) will be used to buy oil products.

“The barter of sustainably mined gold for oil is one of the most important economic policy changes in Ghana since independence. If we implement it as envisioned, it will fundamentally change our balance of payments and significantly reduce the persistent depreciation of our currency with its associated increases in fuel, electricity, water, transport, and food prices,” the vice president said at the time.

Source: YEN.com.gh