BoG suspends Gold-for-Oil programme over financial losses

The Bank of Ghana (BoG) has suspended the country’s Gold-for-Oil programme due to financial losses and operational challenges, marking a significant shift in Ghana’s economic strategy.

The programme, originally designed to reduce reliance on foreign exchange for fuel imports and stabilize domestic fuel prices, has been put on hold as the central bank reassesses its viability.

Governor of the BoG, Dr Johnson Asiama, confirmed the suspension in an interview with Bloomberg, stating, “We have had to incur some losses on that, so we have put some suspension on the trade.” While he did not specify the exact challenges, the decision reflects broader economic adjustments under the new administration.

Despite the setback, Dr. Asiama expressed confidence in Ghana’s economic outlook, particularly regarding exchange rate stability. He assured that the central bank would maintain a disciplined monetary policy to support fiscal stability under President John Mahama’s administration.

“We intend to maintain an appropriate monetary policy stance. Together with commitments to fiscal discipline, this should help us maintain stability in the foreign exchange markets,” he said.