Gold4Oil policy still an option, shouldn’t be cancelled – BoG Governor

The Bank of Ghana (BoG) has reaffirmed its support for the government’s Gold4Oil policy, asserting its importance for the nation despite its limitations.

BoG Governor, Dr. Ernest Addison, appearing before the Public Accounts Committee (PAC) on Monday, April 8, elucidated the crucial role the policy played during the economic crisis.

Dr. Addison highlighted the benefits the Gold4Oil policy has brought since its inception in 2022, pointing out a decrease in oil prices compared to those in 2022.

He suggested that the government could continue to depend on the policy should oil prices rise at the pumps, opposing any potential discontinuation.

“This is an intervention which was very critical in the heat of the crisis, yes the foreign exchange market is functioning better than it was in 2022. Oil prices have come down much better than they were in 2022. The situation is much better now than it was in 2022 when the Gold4Oil policy was introduced.

“However, we think that it’s still an important programme for the government to have that option and to be able to empower commercial banks to undertake their activities. Should market sentiments change, which do every day, we don’t know what will happen tomorrow. And we will wake up and if we find ourselves in a situation where the prices are driving the pumps to where they were again. The government has an option to fall on. It’s a very innovative instrument.”

Dr Addison also forecasted a significant increase in Ghana’s gold reserves.

“There is going to be a big jump in gold holdings for Ghana,” he assured.