The Gold-for-Oil programme in Ghana has been suspended due to unspecified policy and operational challenges, according to Dr. Johnson Asiama, Governor of the Bank of Ghana. The programme aimed to decrease reliance on foreign currency for fuel imports but incurred financial losses. The Bank continues to prioritize economic stability and fiscal discipline under the current administration.
Dr. Johnson Asiama, the Governor of the Bank of Ghana (BoG), has announced the suspension of the Gold-for-Oil programme due to unspecified policy and operational challenges. This initiative, which was intended to reduce dependence on foreign exchange for fuel imports and stabilize domestic fuel prices, is being reassessed as part of a broader shift in the nation’s economic strategy.
Dr. Asiama highlighted that the suspension results from financial losses incurred by the programme. During an interview with Bloomberg, he stated, “We have had to incur some losses on that, so we have put some suspension on the trade.” Despite this setback, he expressed optimism regarding Ghana’s economic stability, particularly concerning the Cedi’s performance following last year’s market volatility.
The central bank aims to maintain a prudent monetary policy to support fiscal discipline under President John Mahama’s administration. Dr. Asiama stated that the BoG would “maintain an appropriate monetary policy stance” to stabilize foreign exchange markets, reflecting a commitment to effective economic management.
The decision to suspend the Gold-for-Oil programme signifies a strategic reevaluation of economic policies, with the Bank exploring other alternatives to achieve fuel price stability. The Governor reaffirmed the central bank’s dedication to navigating the challenges that led to this suspension, ensuring efforts to bolster economic management remain a priority.
In conclusion, the suspension of Ghana’s Gold-for-Oil programme reflects a significant shift in economic policy, driven by financial losses and operational challenges. The Bank of Ghana remains committed to ensuring economic stability through prudent policy measures while exploring alternatives to maintain fuel price stability. Dr. Asiama’s remarks underscore the central bank’s focus on effective management and fiscal discipline as essential components of future economic strategies.
Original Source: www.gbcghanaonline.com
