Vice-President Mahamudu Bawumia said that Ghana’s government is developing a new strategy to purchase oil goods using gold rather than U.S. dollar reserves.
The decision is intended to address the declining foreign exchange reserves and the demand for dollars from oil importers, which are weakening the local cedi and driving up living expenses.
At the end of September 2022, Ghana’s gross international reserves were estimated to be around $6.6 billion, or less than three months’ worth of imports.
Because domestic vendors would no longer require foreign exchange to import oil products, using gold would prevent the exchange rate from having a direct impact on the cost of fuel or utilities, he said.
The news of Bawumia’s declaration came as Ken Ofori-Atta, the finance minister, unveiled plans to reduce spending and increase revenue.