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BoG Governor reaffirms support for government’s Gold for Oil policy… despite limitations

BoG Governor
Governor of Bank of Ghana, Dr. Ernest Addison.


The Governor of the Bank of Ghana (BoG), Dr. Ernest Addison, has reaffirmed his outfit’s support for the government’s Gold for Oil policy.

According to him, even though there are some limitations associated with the policy, the gold for oil is important for national growth.

The Governor of BoG, who said this when he appeared before the Public Accounts Committee (PAC) of Parliament on Monday, April 8, 2024, explained the crucial role the policy played during the economic crisis.

According to him, the benefits the country derived from the Gold for Oil policy since its inception in 2022 are enormous, pointing out that there was a decrease in oil prices compared to the early years before the policy came on stream.

He suggested that the government could continue to depend on the policy should oil prices rise at the pumps, opposing any potential discontinuation.

“This is an intervention which was very critical in the heat of the crisis, yes the foreign exchange market is functioning better than it was in 2022. Oil prices have come down much better than they were in 2022. The situation is much better now than it was in 2022 when the Gold4Oil policy was introduced.

However, we think that it’s still an important programme for the government to have that option and to be able to empower commercial banks to undertake their activities. Should market sentiments change, which do every day, we don’t know what will happen tomorrow. And we will wake up if we find ourselves in a situation where the prices are driving the pumps to where they were again. The government has an option to fall on. It’s a very innovative instrument,” Dr Addison maintained.

Dr. Addison also forecasted a significant increase in Ghana’s gold reserves. Adding that there is going to be a big jump in gold holdings for Ghana.

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