Ghana Has Enough Gold To Exchange For Oil – Deputy Energy Minister

The Deputy Energy Minister, Dr Mohammed Amin Adam, has reiterated the government’s readiness to implement its gold-for-oil barter deal.

According to the minister, the country has enough gold in its reserve to exchange for oil to reduce the current skyrocketing fuel prices.

“Gold mobilisation and gold purchases are everyday activities. And so we have looked at the market, and the Bank of Ghana is already buying gold, and they are able to do 50,000 ounces of gold a month. The PMMC [Precious Mineral Marketing Company] also purchases gold from small-scale miners, and they are able to buy 160,000 ounces every month. And what we need is 205,000 a month.

“And so if you look at our oil bill vis-à-vis the worth of the gold we are able to mobilise monthly, there is no doubt that we’ll be able to get the required gold to exchange for the requirement of our petroleum products, and so we are very confident that this is a policy we can implement without difficulties,” he said.

The government on November 24 revealed that it is negotiating a gold-for-oil barter deal to address the country’s “dwindling foreign exchange reserves” to procure oil products.

Since Vice President Dr Mahamudu Bawumia announced this, many have wondered if the necessary consultation has been held.

Addressing the matter, Dr Adam said that before the announcement of this new policy, the government had engaged all relevant stakeholders.

“We have been engaging the Bank of Ghana, and we also have been talking to oil suppliers. Those who have been supplying petroleum products to our country. We also have been engaging gold refiners and brokers.

“And so extensive discussions and engagements have taken place over the last one month, and this is why at this point we can implement that policy, hence, the announcement,” he explained on Joy News on November 27.