The Governor of the Bank of Ghana (BoG), Dr. Johnson Asiama, has announced the suspension of the country’s Gold-for-Oil program.
Speaking in an interview with Bloomberg, Dr. Asiama stated that the initiative has been put on hold due to unspecified policy and operational challenges.
However, he expressed optimism that the cedi would stabilize following last year’s volatility.
“We intend to maintain an appropriate monetary policy stance. Together with commitments to fiscal discipline under the administration of President John Mahama, this should help us maintain stability in the foreign exchange markets,” he told Bloomberg on Friday, February 28, 2025.
Dr. Asiama further revealed that the program had incurred some losses, prompting its suspension.
“We have had to incur some losses on that, so we have put some suspension on the trade,” he stated.
The Gold-for-Oil program, introduced by the erstwhile Akufo-Addo administration, aimed to reduce reliance on foreign exchange for fuel imports and stabilize domestic fuel prices.
Despite the suspension, Dr. Asiama assured stakeholders that the central bank remains committed to exploring alternative measures to ensure fuel price stability and sustainable economic management.
He also emphasized that improved monetary and fiscal policy coordination should help ease price pressures as Ghana moves past the economic turmoil caused by its 2022 debt default.
The economic challenges in Ghana forced the country to seek a $3 billion bailout from the International Monetary Fund (IMF) and restructure its debt after defaulting on its obligations.
