On March 15, 2023, Vice President Dr. Mahamudu Bawumia, who serves as the head of Ghana’s economic management team, took aim at those who have criticized the government’s gold-for-oil policy.
The vice president hailed the policy’s success, saying that it is now in its third month of operation and that the nation will continue to reap its benefits, which will eventually help stabilize the exchange rate and fuel prices.
The cost of gasoline will fluctuate, as we all must comprehend. But under the Gold-For-Oil Policy, we anticipate more price stability as well as savings in foreign currency. Since this is the third month that the policy has been in effect, there is still more to come.
“Some individuals claimed that it won’t succeed because Ghana doesn’t have enough gold. How is that even possible? We’ve been mining this gold for 200 years; how can it still be useful to us if they keep pulling it out? It is not logical.
Some people find it very disappointing that hemorrhaging is permitted even though it works. We think that nothing is possible. They can stick to it because, for us, God’s mercy makes everything possible.
The Vice President claims that if the policy is optimized to fully cover all of the nation’s foreign imports by the end of the year as anticipated, the nation will save about US$4.8 billion annually in foreign currency.
“I’ve been informed that a drop in fuel costs is expected to occur next week, which is actually not that far away. Tomorrow has come. We shall witness the expected price fall tomorrow. This is amazing. You were at 23 cedis two and a half months ago, and as of today, you are falling to 12 cedis per litre. That is a valid criticism.
“However, let me point you that the fall in gasoline prices is not the most significant feature of the Gold-for-Oil scheme. The Bank of Ghana will save money on foreign exchange as a result of the decreased need for foreign exchange for oil imports, which is the most significant factor.
At the opening of the state-owned Bulk Oil Storage and Transportation Company Limited’s new headquarters, the vice president said, “That saving is enormous. The goal is to move to 100% and that will be done this year. We are currently importing about 50 to 60 percent of oil under this policy.” (BOST).
