By The Bank of Ghana (BoG) has announced its intention to transfer the operation of the Gold for Oil program to a commercial bank. According to BoG Governor Dr. Ernest Addison, this move will enable the central bank to concentrate on its primary functions of monetary policy and maintaining price stability.
The program, introduced two years ago, aimed to reduce fuel prices at the pumps. However, fuel prices have been on the rise in recent weeks despite the program’s implementation.
However, in an interview with JoyNews, Dr. Addison emphasized that the policy still serves as a strategic solution to boost the country’s reserves. He highlighted that the gold-for-oil program has proven beneficial to the nation during times of crisis and therefore justifies its continuation.
“We only want to make sure that this is done by a commercial bank so that we can have time to focus on our operations as a central bank.
“So this is the discussion that we are holding going forward but the ability to be able to exchange our natural resource directly for oil when oil prices get out of hand, we think that is a very innovative programme,” the BoG Governor said.
Dr Addison also asserted that the economy is recovering, with the country’s foreign exchange reserves showing improvement.
“For the economy as a whole, I can tell you that things are improving. Our foreign exchange reserve levels are improving. Recently, the World Bank, thanks to the Members of Parliament, approved a facility so we have had $300 million added to our reserves.
“All of that, you know, strengthens our position and supports in executing these types of projects. So rest assured that so long as the economy continues on the path that we are on, we should be able to help government deliver,” he said.
