Operationalization of Gold for Oil policy completed, first product to be delivered in January 2023 – Bawumia
Vice President Dr. Mahamudu Bawumia has announced that the government has completed all the necessary processes for the commencement of the “God for Oil” policy.
In a post shared on Facebook on Thursday, December 22, 2022, Dr Bawumia said that the first transaction under the policy with be done in January 2023.
Dr Bawumia commended the government agencies and stakeholders who have helped make the policy a realisation.
“I am happy to announce that the Government of Ghana has concluded the arrangements for the operationalization of the Gold for Oil policy.
“Consequently, the first oil products under the policy will be delivered next month (January 2023). My thanks to the Minister for Energy, Minister for Lands and Natural Resources, Governor of the Bank of Ghana, the Chamber of Mines, PMMC and BOST for their leadership in the operationalization of the Government’s Gold for Oil Policy,” parts of the post read.
Dr. Bawumia previously stated that the government is negotiating a new policy to ensure that the country purchases imported oil products with gold rather than foreign currency.
In a Facebook post on November 24, 2022, the Vice President said the policy is expected to take effect by the end of the first quarter of 2023 and form parts of efforts to address the persistent depreciation of the cedi.
He explained that once the policy is implemented, “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,” the Vice president said.
Adding that, “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.”