Ghana’s vice-President Dr. Mahamudu Bawumia underscores that the gold for oil policy will save the country some US$4.8 billion annually.
According to him, the policy when implemented shall be beneficial that oil importing companies will not go to the Bank of Ghana to look for huge amount of money to buy oil.
The Gold for Oil, government says is to allow payment for imported oil products with gold, in a direct barter with gold purchased by the central bank.
It explained that the intervention would help stabilise prices of fuel products, as well as reduce pressure on Ghana’s foreign exchange as the direct gold barter will be the mode of paying for imported oil instead of depleting the foreign exchange reserve.
Dr. Bawumia speaking at the commissioning of a new head office for the Bulk Oil Storage and Transportation Company in Accra on Wednesday, March 15, said government’s goal is ensuring the policy increase to 100%.
“We are currently importing about 50 to 60% of our oil import under this policy. The goal is to move to 100% and that will be done this year. But the savings in foreign exchange when we do this will be an annual savings of US$4.8 billion every year when we get this done.
And that means oil importing companies will not go to the Bank of Ghana to look for US$4.8 million to buy oil, we will buy that gold with our cedis, convert it into oil payment and that demand will no longer be there,” he added.