The Bank of Ghana (BoG) has suspended the Gold-for-Oil programme due to policy and operational challenges, marking a significant shift in Ghana’s economic strategy.
The initiative, which was introduced to reduce reliance on foreign exchange for fuel imports and stabilize domestic fuel prices, has now been put on hold following concerns over its sustainability.
Governor of the BoG, Dr. Johnson Asiama, revealed in an interview with Bloomberg that financial losses were a key factor in the decision to halt the programme.
“We have had to incur some losses on that, so we have put some suspension on the trade,” Dr. Asiama stated, without disclosing specific details on the challenges faced.
The suspension comes amid broader economic adjustments under the new administration, as the government reassesses policies to ensure fiscal stability.
The move signals a departure from the previous administration’s approach, raising questions about Ghana’s future strategy for managing fuel imports and foreign exchange reserves.
Despite the suspension, Dr. Asiama remains optimistic about the country’s economic outlook, particularly regarding the stability of the cedi following a period of volatility.
He assured that the central bank is committed to maintaining a disciplined monetary policy to support economic recovery and sustain fiscal stability.
The development has sparked discussions among economic analysts, with many awaiting further details on the government’s next steps in fuel price management and forex policy.
