According to an announcement made by Vice President Dr. Mahamudu Bawumia, the much-lauded “gold for oil” policy would begin to be implemented on the first day of the next month.
The Vice President of Ghana made the “Oil for Gold” initiative public knowledge about a month ago. As part of this initiative, Ghana will pay for imported oil products with gold.
The Vice President of Ghana explained that this move will have a positive impact on Ghana's US dollar foreign exchange reserve, fuel prices, and general cost of living.
In a post that he published on his Facebook page on Thursday, Vice President Bawumia said that the effort will get off the ground next month with the first shipment of oil goods that fall under the policy.
On his official Facebook account, Dr. Bawumia wrote, “I am happy to announce that the Government of Ghana has concluded the arrangements for the operationalization of the gold for oil policy.”
“I am happy to announce that the Government of Ghana has concluded the arrangements for the operationalization of the gold for oil policy.”
“As a direct result of this, the very first oil goods authorized under the plan will be shipped the following month (January 2023). My gratitude goes out to the Minister for Energy, the Minister for Lands and Natural Resources, the Governor of the Bank of Ghana, the Chamber of Mines, PMMC, and BOST for their leadership in the operationalization of the Gold for Oil policy that the government has implemented. He finished by praying that “God bless our nation, Ghana.”
On both the national and international stages, the policy has been called a “game changer” in a number of ways.
Bawumia has revealed that the first delivery of oil products under the “Oil for Gold” scheme will take place the following month.
Many people have praised the Vice President's original proposal, and many experts concur with the justifications and anticipated benefits that the Vice President provided.
When the policy was announced the previous month, Vice President Bawumia provided an explanation of how it will assist in the pursuit of a stable forex, as well as its influence on oil prices and the cost of living.
“The demand for foreign exchange by oil importers in the face of dwindling foreign exchange reserves results in the depreciation of the cedi and increases in the cost of living with higher prices for fuel, transportation, utilities, and other things.”
“The demand for foreign exchange by oil importers in the face of dwindling foreign exchange reserves results in the depreciation of the cedi and the increase in In order to overcome this obstacle, the government is currently in the process of establishing a new policy regime in which our gold (rather than our stockpiles of US dollars) would be utilized to purchase oil goods.
According to a post that Dr. Bawumia made on Facebook, the exchange of oil for gold that was mined in an environmentally responsible manner is one of the most significant reforms to Ghana's economic strategy since the country gained its independence.
