Bank of Ghana suspends Gold-for-Oil programme

The Governor of the Bank of Ghana (BoG), Dr. Johnson Asiama, has announced the suspension of the country’s Gold-for-Oil programme, citing unspecified policy and operational challenges.

The move marks a significant shift in Ghana’s economic strategy, as the initiative was originally introduced to reduce reliance on foreign exchange for fuel imports and stabilize domestic fuel prices.

In an interview with Bloomberg, Dr. Asiama revealed that financial losses incurred under the programme had prompted its temporary suspension.

“We have had to incur some losses on that, so we have put some suspension on the trade,” he stated, without elaborating on the specific obstacles that led to the decision.

The suspension is part of broader economic adjustments under the new administration.

Despite the setback, Dr. Asiama remains optimistic about Ghana’s economic prospects, particularly regarding the stability of the cedi after last year’s volatility.

He assured that the central bank would maintain a prudent monetary policy to support fiscal discipline.

“We intend to maintain an appropriate monetary policy stance. Together with commitments to fiscal discipline under the administration of President John Mahama, this should help us maintain stability in the foreign exchange markets,” he noted.

The suspension of the Gold-for-Oil programme signals a reassessment of Ghana’s economic policies, with the BoG exploring alternative strategies to sustain fuel price stability.

Dr. Asiama reaffirmed the central bank’s commitment to sound economic management while addressing the challenges that led to this policy shift.