Skip to main content

Using gold to buy crude oil

 

VIDEO: Using gold to buy crude oil not de-dollarisation policy - VP Bawumia

Date: Nov - 28 - 2022 , 08:31
BY: GraphicOnline
VIDEO: Using gold to buy crude oil not de-dollarisation policy - VP Bawumia
VIDEO: Using gold to buy crude oil not de-dollarisation policy - VP Bawumia

Vice-President, Dr. Mahamudu Bawumia has stated that some analysts and commentators have misinterpreted Ghana’s policy of using gold reserves to pay for oil as an attempt by the country to move away from using the US dollar for international transactions.

Speaking at the 2022 AGI Awards in Accra, Dr. Bawumia noted that to the contrary, Ghana's gold for oil program will give Ghana the space to accumulate more international reserves as the country will save the $3 billion it spends on oil imports.

He added that the use of gold was specifically for oil imports in the face of declining foreign exchange reserves.

“Unfortunately some people have misinterpreted this as Ghana being against the use of the US dollar in international transactions. Far from it. We want to accumulate more US dollar reserves in the future”, the Vice President noted.

Vice President Bawumia noted that a major source of cedi depreciation has been the demand for forex to finance the import of oil products and to address this challenge, the government is negotiating a new policy regime where sustainably mined gold will be used to buy oil products.

Dr. Bawumia said: “If we implement the gold for oil policy as it as envisioned, it will fundamentally change our balance of payments and significantly reduce the persistent depreciation of our currency with its associated increases in fuel, electricity, water, transport and food prices".


This, he noted, is because the exchange rate (spot or forward) will no longer directly enter the formula for the determination of fuel or utility prices since all the domestic sellers of fuel will no longer need foreign exchange to import oil products.

Watch the Vice President's speech below;

Comments

Post a Comment

Popular posts from this blog

DCE Distributes Farming Tools to Boost Agriculture in Twifo Atti Morkwa

 DCE Distributes Farming Tools to Boost Agriculture in Twifo Atti Morkwa The District Chief Executive (DCE) and Member of Parliament of Twifo Atti Morkwa, on behalf of His Excellency John Dramani Mahama, distributed farming tools, including boats and fertilizers, to local farmers. This initiative aims to enhance agricultural productivity and improve the livelihoods of farmers in the district. The DCE's efforts demonstrate the government's commitment to supporting the agricultural sector and promoting economic growth in the region.  He further added at the items giving to the farmers will be monitored by the agriculture director to make sure they are using it. Anyone who will cought by selling his or her tools will be handed over to the police custody  Farmers expressed gratitude to the President and the DCE for the timely intervention, which they believe will significantly impact their farming activities. This initiative is a testament to the government's efforts to promo...
Post a Comment
Read more

Don't Wait for National Sanitation Day to Clean Your Compound" - DCE Urges Assembly Members

  *"Don't Wait for National Sanitation Day to Clean Your Compound" - DCE Urges Assembly Members* Today marks National Sanitation Day across Ghana, an initiative by President John Dramani Mahama. The Twifu Atti-Morkwa District Assembly, led by Hon. Isaac Kofi Yawson, organized a clean-up exercise at Twifu Mampong, the center of Mampong Area Council. Chiefs, pastors, opinion leaders, and officials from the Assembly participated in the event. During the exercise, residents of Twifu Mampong came out in large numbers to clear principal streets and gutters. Hon. Yawson expressed gratitude to participants for their overwhelming support and acknowledged the importance of putting aside political differences to focus on development. The DCE urged assembly members not to wait for National Sanitation Day to clean their compounds, emphasizing that cleanliness should be a daily routine to combat malaria and other diseases. "Clean-up exercises must be our daily routine, which can h...
Post a Comment
Read more

ECOLINKS Supports Twifu Atti-Morkwa District with 1000 Coalpots*

  *ECOLINKS Supports Twifu Atti-Morkwa District with 1000 Coalpots* The District Chief Executive for Twifu Atti-Morkwa District, Hon. Isaac K. Yawson, has revealed that the foreign-based Non-Governmental Organization, ECOLINKS, has donated 1000 gyapa coalpots to residents of five communities in the district. The communities benefiting from the initiative are Akweikrom, Akloman, Akutuase, Asamoakrom/Ongwaso, and Bimpongegya, with each community receiving 200 coalpots. According to Hon. Yawson, the primary objective of this program is to help mitigate climate change in the district, region, and country as a whole. He attributed the adverse effects of climate change to human activities such as cutting down trees for firewood. Hon. Yawson expressed gratitude to ECOLINKS for their continued support, noting that this is not the first time the organization has made such a donation to the district. He credited his lobbying efforts for the successful acquisition of the coalpots. The Assembl...
Post a Comment
Read more