The Managing Director (MD) of the Bulk Oil Storage and Transportation Company Limited (BOST), Edwin Provencal, has lauded the gold-for-oil initiative as a strategic move to boost Ghana’s economy.
The gold-for-oil initiative, which was recently introduced by the government, allows Ghana to trade its gold reserves for crude oil. This innovative approach aims to secure a stable supply of oil for the country while leveraging its abundant gold resources.
In an interview on Ghana Rising on ABC News GH, Mr. Provencal emphasized the potential benefits of the initiative, stating that it would help to strengthen Ghana’s petroleum security and fiscal outlook as a whole.
“The gold-for-oil initiative is one of the powerful intervention trhat Ghanaians should be grateful for. The gold-for-oil policy was a solution to temporal inflation we faced due to COVID-19 and Russia-Ukraine war, as it would cost about $4.8 billion annually to import fuel to meet the current demand. Thus, the initiative was an alternative payment mechanism so that this 480 million demand for dollars won’t have to be taken out of the economy,” he stated.
He added, “So far, we’ve witnessed the steady decline in the prices of petroleum product and the exchange rate has stabilized. The initiative has proved effective and I believe within the next six to seven months, we will see its full impact on the economy”.
He also expressed confidence in the initiative’s ability to create new opportunities for investment and trade, ultimately contributing to the country’s overall development.