Ghana stands a better chance to exchange gold for oil – Dr. Amin Adam

Government has expressed confidence to move ahead with its plans to implement a policy which sees the trade-off of doré gold for oil products in a barter deal.

According to a Deputy Energy Minister, Dr. Mohammed Amin Adam, Ghana currently has enough gold in its reserves to implement the exchange deal for oil products.

He explained that the move is primarily aimed at addressing soaring fuel prices as well as easing pressure on the local currency which has been depreciating persistently.

Speaking on Accra-based Joy News on November 27, 2022, Dr. Amin Adam explained that, “Gold mobilisation and gold purchases are everyday activities and government has looked at the market thoroughly."

“The Bank of Ghana is already buying gold and they are able to do 50,000 ounces of gold a month. The PMC [Precious Mining Company] also purchase gold from small-scale miners and they are able to buy 160,00 ounces every month. And what we need is 205,000 a month,” he is quoted by Joy Business.

He further indicated that, through the policy which is set to kick off next year, Ghana stands a great chance of mobilizing the required gold to exchange for oil in the proposed barter trade deal.

“And so, if you look at our oil bill vis-à-vis the worth of the gold we are able to mobilize monthly, there is no doubt that we’ll be able to get the required gold to exchange for the requirement of our petroleum products and so we are very confident that this is a policy we can implement without difficulties,” he said.

The announcement of the policy was first made by Vice President Dr. Mahamudu Bawumia last week who said government was in talks to negotiate the deal as part of efforts to address Ghana’s dwindling foreign exchange reserves and curtail the cedi's depreciation.

MA/ESA