The Governor of the Bank of Ghana (BoG), Dr. Ernest Addison, reaffirmed his strong support for the government’s Gold for Oil policy, emphasizing its crucial role in bolstering the nation’s economy during challenging times.
Addressing the Public Accounts Committee (PAC) on Monday, April 8, 2024, Dr. Addison commended the initiative for its significant contributions to stabilizing fuel prices amidst economic uncertainties.
Dr. Addison explained that the Gold for Oil programme has been instrumental in mitigating the impact of economic downturns, particularly in stabilizing fuel prices.
He revealed that discussions are underway to transition the programme to a commercial bank, allowing the central bank to focus on its core operations.
“We recommend the continuation of this programme as it proved vital during the crisis period. Handing it over to a commercial bank will enable us to concentrate on our central banking functions,” Dr. Addison asserted during the PAC session.
Highlighting the innovative nature of the Gold for Oil policy, Dr. Addison emphasized the direct exchange of natural resources for oil as a crucial strategy for managing oil price fluctuations effectively.
In anticipation of potential future fuel price fluctuations, Dr. Addison underscored the importance of retaining the programme as a viable option for the government to leverage for economic stabilization.
“The Gold for Oil policy served as a critical intervention during the economic crisis. While current market conditions are more favorable compared to 2022, uncertainties persist, and having this mechanism in place provides the government with a valuable tool for addressing sudden price escalations,” Dr. Addison elaborated.
Concluding his remarks, Dr. Addison reiterated the significance of maintaining the Gold for Oil policy as a forward-thinking instrument that affords the government flexibility and stability in managing economic challenges.
By Vincent Kubi