Gold4Oil Policy Has Been Good for the Economy BoG Tells PAC

The Governor of the Bank of Ghana (BoG), has lauded the government’s Gold4oil policy stating its importance amidst the obstacles that comes with its implementation.

Dr. Ernest Addison, in an appearance at the Public Accounts Committee (PAC) on Monday, April 8, expounded the crucial role the policy played during the economic crisis the country faced.

Dr. Addison therefore, highlighted the advantages the Gold4Oil policy has brought since its inception in 2022, pointing out a diminish in oil prices compared to the earlier prices in 2022.

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

He said, “this is an intervention which was very crucial 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 significant programme for the government to have that option and to be able to empower commercial banks to undertake their activities. Should market sentiments alter, 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.”

Speaking further, he elucidated how significantly Ghana’s Gold reserve has increased over the years with the innovative policies and interventions by the government, adding that, Ghana is going to experience massive increment in gold holdings.

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