Dr Mahamudu Bawumia
Vice President Dr Mahamadu Bawumia has rubbished claims suggesting Ghana does not have enough gold to sustain the Gold for oil policy.
The policy is to allow the government to pay for imported oil products with gold, in a direct barter with gold purchased by the central bank.
The move is an intervention to help stabilise prices of fuel products, as well as reduce pressure on Ghana’s foreign exchange, as the direct gold barter will be the mode of paying for imported oil instead of depleting the foreign exchange reserve.
Some expert including the former boss of the National Petroleum Authority (NPA) Alex Mould had earlier described the policy as needless.
However, reacting to the development at the Commissioning of a new Bulk Oil Storage and Transportation (BOST) Head office in Accra on Wednesday, (15 March), Bawumia said” There are people who are very disappointed the policy is working, but bleeding is allowed.”
“We have to understand, the prices of fuel will go up and come down, but what we expect to see under the Gold for oil policy is more stability in the pricing and also savings in foreign exchange, there is more to come.”
Bawumia added “This is the third month of the operation of the policy, just the third month, some people said it will not work, Ghana does not have enough gold, how can you say that? we have been mining this gold for 200 years, they keep taking it out and it cannot work?”
Listen to Dr Mahamudu Bawumia in the attached audio clip below:
