The Bank of Ghana (BoG) has decided to suspend its Gold-for-Oil program due to operational and policy challenges that resulted in financial losses. The initiative, which aimed to reduce the country’s dependence on foreign exchange for fuel imports and stabilize fuel prices domestically, has been temporarily halted as the Central Bank reevaluates its economic strategies.
In an interview with Bloomberg, BoG Governor Dr. Johnson Asiama confirmed the suspension, acknowledging that the programme had incurred some losses. However, he did not provide specific details on the nature of these challenges. The decision comes as part of a wider policy shift under the current administration.
Despite the setbacks with the Gold-for-Oil programme, Dr. Asiama expressed confidence in Ghana’s economic prospects. He emphasized the stability of the local currency, the cedi, which had faced significant volatility in the past year, and reassured that the government’s monetary policy would continue to prioritize fiscal discipline and stability in the foreign exchange markets.
Looking ahead, the Bank of Ghana intends to maintain an appropriate monetary policy stance, with the hope that ongoing efforts under President John Mahama’s administration will lead to sustained economic stability.
SOURCE: CITI NEWSROOM