Ghana’s central bank, the Bank of Ghana (BoG), has suspended the Gold-for-Oil programme due to policy and operational challenges, marking a significant shift in the country’s economic strategy. The programme, which was introduced to reduce reliance on foreign exchange for fuel imports and stabilize domestic fuel prices, has incurred financial losses, necessitating its temporary suspension.
According to BoG Governor, Dr. Johnson Asiama, the decision to suspend the programme was made after careful consideration. “We have had to incur some losses on that, so we have put some suspension on the trade,” he explained in an interview with Bloomberg.
Despite the suspension, Dr. Asiama remains optimistic about Ghana’s economic prospects, particularly regarding the stability of the cedi. He assured that the central bank would maintain a prudent monetary policy to support fiscal discipline, which would help maintain stability in the foreign exchange markets.
The suspension of the Gold-for-Oil programme signals a reassessment of economic policies, with the BoG exploring alternative measures to sustain fuel price stability. Dr. Asiama reaffirmed the central bank’s commitment to ensuring effective economic management while addressing the challenges that led to the programme’s suspension.
Ruth Abla ADJORLOLO
