The Governor of the Bank of Ghana, Dr Ernest Addison, has said the government needed to introduce the Gold for Oil policy to support the economy.
Speaking at the just-ended Ghana Mining Expo in Takoradi, he said the economic crises affected the foreign exchange market and led to very large adjustments.
Dr. Addison asserted that the Gold for Oil policy has yielded significant results in foreign exchange resources, increased competition among market players, and lower ex-pump petroleum prices as well as some stability in the FX markets.
He made mention that, ” The introduction of the G4O was critical during the recent economic crisis, especially in the last quarter of 2022.
The crisis affected the foreign exchange market and led to very large adjustments in the exchange rate and distorted forward exchange rate quotes which were used to price petrol.”
He continued saying that, ” Government intervention to directly engage oil producers became critical in obtaining cheaper fuel from G4O arrangements. It became clear that leveraging the BoG Gold for Reserves programme to support investment in oil would help.
At the time, domestic ex-pump petroleum prices were changing rapidly with associated upward adjustments in transport costs, due mainly to the sharp currency depreciation and rising headline inflation.”
He also added that through the government’s sustained efforts and commitment to addressing the menace associated with unlicensed miners who violate sustainable mining practices.
” Ghana has made sustained efforts and remains committed to addressing the menace associated with unlicensed miners who violate sustainable mining practices,”
” It is our expectation that as the benefits of the DGP programme become tangible to all the players in the value chain, activities of these illegal operators will be reduced or made to align with responsible mining practices as the economic and legal costs of operating outside the Law will be prohibitively expensive,” Mr Addison added.
