By: Franklin ASARE-DONKOH
The Governor of Ghana’s central bank, the Bank of Ghana (BoG), Dr Johnson Asiama, has announced the suspension of the Gold-for-Oil programme the immediate past government committed the country to due to what he (Dr Asiama) described as unspecified policy and operational challenges.
According to him, the decision to suspend the Gold-for-Oil programme marks a significant shift in the country’s economic strategy. The initiative was originally designed to reduce reliance on foreign exchange for fuel imports and to stabilise domestic fuel prices.
Dr Asiama, who made the disclosure during an interview with an international news agency, Bloomberg, explained that Ghana’s Gold-for-Oil programme had incurred financial losses, necessitating its temporary suspension.
“We have had to incur some losses on that, so we have put some suspension on the trade,” he reiterated.
Although the Gold-for-Oil programme has been put on ice, the BoG Governor was optimistic about Ghana’s economic prospects, particularly regarding the stability of the Cedi following last year’s volatility.
He said the country’s central bank would uphold 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 remarked.
The suspension of the Gold-for-Oil programme signals a reassessment of economic policies, with the BoG exploring alternative measures to sustain fuel price stability.
Dr Asiama reaffirmed the central bank’s commitment to ensuring effective economic management while addressing the challenges that led to the programme’s suspension.
