According to the vice president, Dr. Mahamudu Bawumia, the administration is negotiating a new strategy to ensure that the nation pays for imported oil goods with gold rather than foreign currency.
The Vice President stated that the policy is anticipated to go into effect by the end of the first quarter of 2023 and is a part of an effort to address the cedi’s ongoing depreciation in a Facebook post on November 24, 2022.
The program, he said, “would radically alter our balance of payments and greatly lessen the continual devaluation of our currency with its corresponding hikes in fuel, power, water, transit, and food prices.”
“This is because the exchange rate (spot or forward) will no longer directly enter the formula for the determination of fuel or utility prices since all the domestic sellers of fuel will no longer need foreign exchange to import oil products,“ the Vice president said.
“The barter of gold for oil represents a major structural change. My thanks to the Ministers for Lands and Natural Resources, Energy, and Finance, Precious Minerals Marketing Company, and the Governor of the Bank of Ghana for their supportive work on this new policy. We expect this new framework to be fully operational by the end of the first quarter of 2023. God bless our homeland Ghana,” Dr. Bawumia wrote.