A political analyst Mr. Alex Emmanuel Nti who doubles as a financial engineer has stated that, the gold for oil policy needs to be reviewed and also manage the exchange rate well to suit the current situation.
Speaking on Plan B FM’s late afternoon show EBAANOSEN hosted by Ohene Kinnah, Mr. Nti stressed that, gold-for-oil policy was already in shambles before it was introduced and also the government is either short of ideas or is deliberately attempting to rob the citizenry.
He said foreign exchange by oil importers in the face of dwindling foreign exchange reserves results in the depreciation of the cedi and increases in the cost of living with higher prices for fuel, transportation, utilities, among others; hence, the barter of sustainably mined gold for oil is one of the most important economic policy changes in Ghana since independence.
Meanwhile, the Bank of Ghana (BoG) says it intends to hand over the Gold for Oil programme to a commercial bank to operate.
This, according to the Governor of BoG Dr. Ernest Addision, will allow the central bank to focus on its core functions of monetary policy and maintaining price stability.
Introduced two years ago, the program was expected to reduce fuel prices at the pumps. However, prices have been escalating in recent weeks.
Dr Addison said the policy remains a strategic solution in boosting the country’s reserves.
He emphasised that the gold-for-oil program has been beneficial to the nation during crisis and thus warrants continuation.
“We only want to make sure that this is done by a commercial bank so that we can have time to focus on our operations as a central bank.
“So this is the discussion that we are holding going forward but the ability to be able to exchange our natural resource directly for oil when oil prices get out of hand, we think that is a very innovative programme,” the BoG Governor said.
Dr Addison also asserted that the economy is recovering, with the country’s foreign exchange reserves showing improvement.
“For the economy as a whole, I can tell you that things are improving. Our foreign exchange reserve levels are improving. Recently, the World Bank, thanks to the Members of Parliament, approved a facility so we have had $300 million added to our reserves.
“All of that, you know, strengthens our position and supports in executing these types of projects. So rest assured that so long as the economy continues on the path that we are on, we should be able to help government deliver,” he said.
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