Vice President Dr Mahamudu Bawumia has lauded the Gold for Oil program, asserting that it has been instrumental in stabilizing Ghana’s economy.
During a media encounter on Sunday, August 25, Bawumia stated, “Without the gold purchase programme and the gold for oil programme, this economy would have collapsed.”
The program, designed to exchange gold for oil, has been endorsed by the Governor of the Bank of Ghana (BoG), Dr. Ernest Addison.
In a recent statement, Addison recommended the continuation of the initiative, highlighting its vital role as a response to economic challenges.
He revealed that the BoG intends to transition the program’s management to a commercial bank to allow the central bank to focus on its primary functions.
“The Gold for Oil program is innovative and helped us during the crisis,” Addison noted.
He indicated that while the central bank has been instrumental in managing the program, it intends to shift its oversight to a commercial entity to streamline operations and concentrate on core activities.
Addison also assured that the central bank plans to significantly increase its gold holdings next year, and the full benefits of the program are expected to materialize over time.
He emphasized that the program began in 2022 and is still in its early stages.
The Gold Repurchase Programme, launched by the BoG in July 2021, aims to double the bank’s gold reserves over five years.
Despite steady growth in Ghana’s foreign reserves to nearly US$11 billion, the proportion of gold reserves has remained constant at 8.77 tonnes.
This is contrasted with industrialized countries that have continued to expand their gold reserves.
Despite being a leading gold producer, Addison noted that Ghana has remained relatively high in its gold reserves. In contrast, other central banks, such as those in Turkey, India, and Russia, have notably boosted their holdings.
He emphasized the need for Ghana to enhance its gold reserves to align with global trends and capitalize on its gold production capabilities.
