The Governor of the Bank of Ghana (BoG), Dr. Johnson Asiama has announced the suspension of the Gold-for-Oil programme, citing unspecified policy and operational challenges that led to financial losses. The move marks a significant shift in the country’s approach to managing fuel imports and exchange rate stability.

Originally introduced as a way to reduce Ghana’s dependence on foreign exchange for fuel purchases, the Gold-for-Oil initiative was meant to help stabilise domestic fuel prices. However, according to Dr. Asiama, the programme has not achieved its intended goals and has instead incurred losses.

In an interview with Bloomberg, the BoG governor confirmed the suspension, noting, “We have had to incur some losses on that, so we have put some suspension on the trade.” Though he didn’t go into detail about the challenges, the suspension reflects the broader economic adjustments being made under the new administration.

Despite the setback, Dr. Asiama expressed cautious optimism for Ghana’s economic future. He highlighted the stabilisation of the cedi after a period of significant volatility and assured that the central bank would continue to implement sound monetary policies.

“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,” Dr. Asiama said.

The suspension of the Gold-for-Oil programme signals a reassessment of economic policies, as Ghana looks for alternative ways to sustain fuel price stability while navigating broader fiscal challenges. The central bank, according to Dr. Asiama, remains committed to ensuring effective economic management moving forward.

Source:TheDotNews