The Governor of the Bank of Ghana (BoG), Dr. Johnson Asiama, has announced the suspension of Ghana’s Gold-for-Oil initiative due to unspecified policy and operational difficulties.
This decision marks a major shift in the country’s economic approach, as the programme was initially introduced to reduce dependence on foreign exchange for fuel imports and stabilize domestic fuel prices.
In an interview with Bloomberg, Dr. Asiama revealed that financial losses had been incurred under the initiative, making its temporary suspension necessary.
“We have had to incur some losses on that, so we have put some suspension on the trade,” he stated. While he did not provide details on the specific challenges, the move reflects broader economic adjustments under the new administration.
Despite the suspension, Dr. Asiama remained optimistic about Ghana’s economic outlook, particularly the stability of the cedi following last year’s fluctuations.
He reassured the public that the central bank would maintain a disciplined monetary policy to support fiscal stability.
“We intend to maintain an appropriate monetary policy stance. Along with commitments to fiscal discipline under the administration of President John Mahama, this should help us sustain stability in the foreign exchange markets,” he noted.
The suspension of the Gold-for-Oil initiative indicates a reassessment of economic strategies, with the BoG exploring alternative measures to maintain fuel price stability.
Dr. Asiama reiterated the central bank’s dedication to effective economic management while addressing the issues that led to the programme’s suspension.
About The Author
