Government has commenced a new policy regime where the country’s gold will be used to trade in oil products instead using the US dollar from the reserves.
The framework will be fully operational by the end of the first quarter of 2023.
According to vice President Bawumia, the barter system would be one of the most important economic policy game changer in Ghana since independence.
Vice President Bawumia in a post on his Facebook wall, was optimistic that “If we implement it as envisioned, it will fundamentally change our balance of payments and significantly reduce the persistent depreciation of our currency with its associated increases in fuel, electricity, water, transport, 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.”
He ssid the demand for foreign exchange by oil importers in the face of dwindling foreign exchange reserves results in the depreciation of the cedi and increases in the cost of living with higher prices for fuel, transportation, utilities, etc.
He hinted the barter of gold for oil which represents a major structural change will address the economic instability challenges.
Veep lauded the Ministers for Lands and Natural Resources, Energy, and Finance, Precious Minerals Marketing Company, The Ghana Chamber of Mines and the Governor of the Bank of Ghana for their contribution towards the new policy.
Let’s hope for the best for our country
It makes sense though