Ghana’s government is working on a new policy where gold rather than US dollar reserves will be used to buy oil products, Vice President Mahamudu Bawumia says on Facebook.
The move is meant to tackle dwindling foreign currency reserves coupled with demand for US dollars by oil importers, which is weakening the local cedi and increasing living costs.
Ghana’s Gross International Reserves stood at about $US6.6 billion ($A9.8 billion) at the end of September 2022, equating to less than three months of imports cover.
That is down from a stock position of about $US9.7 billion at the end of last year, according to the government.
If implemented as planned for the first quarter of 2023, the new policy “will fundamentally change our balance of payments and significantly reduce the persistent depreciation of our currency,” Bawumia said.
Source: Katherine Times