Dr. Mohammed Amin Adam, Deputy Energy Minister, has said that the government is ready to implement its gold-for-oil barter agreement.
According to him, the country has enough gold in reserve to swap for gasoline in order to lower the country’s present increasing fuel prices.
He made this revelation on Sunday, November 28,2022, while participating in a conversation on JoyNews’ The Probe.
“Gold mobilization and gold purchases are commonplace.” So we looked at the market, and the Bank of Ghana is currently buying gold at a rate of 50,000 ounces per month. The PMC [Precious Mining Company] also buys gold from small-scale miners, with a monthly capacity of 160,00 ounces. And we require 205,000 per month.
“And so if you look at our oil bill vis-à-vis the worth of the gold we are able to mobilize monthly, there is no doubt that we’ll be able to get the required gold to exchange for the requirement of our petroleum products and so we are very confident that this is a policy we can implement without difficulties,” he said.
The government announced on Thursday, November 24,2022, that it is negotiating a gold-for-oil barter deal to supplement the country’s “dwindling foreign exchange reserves” in order to purchase oil products.
Many have questioned whether the requisite consultations have taken place since Vice President Mahamudu Bawumia stated this.
In response, Dr. Adam stated that the administration has engaged all important parties prior to the release of this new policy.
He emphasized that the government was confident in implementing the program because of the positive comments.
“We have been in contact with the Bank of Ghana, as well as oil suppliers.” Those who have supplied our country with petroleum products. We have also contacted gold refiners and brokers.
“And so extensive discussions and engagements have taken place over the last one month and this is why at this point we can implement that policy, hence, the announcement,” he explained.
