"Gold-for-Oil Program Suspended by Ghana\u2019s New Central Bank Boss"

" \r\n Gold-for-Oil Program Suspended by Ghana\u2019s New Central Bank Boss \r\n \r\nGhana\u2019s new central bank chief has suspended the West African nation\u2019s program of paying for oil with gold and said he expects the cedi to stabilize after it\u2019s volatility of last year.\r\n \u201cWe intend to maintain an appropriate monetary policy stance,\u201d Bank of Ghana Governor Johnson Asiama, 56, said in an interview on Friday. Together with commitments for fiscal discipline under the administration of President John Mahama, that \u201cshould help us maintain stability in the foreign exchange markets,\u201d he said. \r\n With interest rates at 27% and inflation easing to 23.5% in January, Asiama said better monetary and fiscal policy-coordination should help cool price pressures as the country puts the economic trauma of its 2022 debt default behind it. Africa\u2019s biggest gold producer had to seek a $3 billion bailout from the International Monetary Fund and restructure its debt after defaulting on its obligations. \r\n After losing 19% of its value against the dollar last year, the governor also saw the cedi avoiding more of the \u201cextreme volatilities\u201d it has witnessed in recent months. \r\n Countering currency swings was the reason the previous government, which Mahama convincingly beat in December elections, introduced the gold-for-oil program, with the central bank buying gold in local currency and then using it to barter or purchase oil. \r\n \u201cWe have had to incur some losses on that,\u201d Asiama, who completed his doctorate in economics from the University of Southampton, told Bloomberg Television\u2019s Ondiro Oganga without giving details. \u201cSo we\u2019ve put some suspension\u201d on the trade, he said. \r\n Ghana\u2019s oil import bill was $4.5 billion in 2024. As of September, the Bank of Ghana had bought 65.4 tons of gold for its foreign reserves as well as for the execution of the barter program, with the former reaching 30.5 tons by the end of last year. \r\n The central bank may remove itself from the program to purchase bullion and hand the role to a soon to be establish Gold Board, he said. \r\n Asiama, who Mahama swore into office on Feb. 25, has vowed to stem loses at the central bank after it recorded a record spending overrun in 2022 of 60.9 billion cedis ($3.9 billion) due to loan write-downs to qualify for an International Monetary Fund bailout. \r\n\r\n \u201cI can tell you for sure that for this year we\u2019ll not see a loss occurring,\u201d Asiama said. \u201cWe are taking the right measures to control operational costs.\u201d "

"Gold-for-Oil Program Suspended by Ghana\u2019s New Central Bank Boss"

Laud Nartey Writes on Avoiding the Oil Curse: Why PIAC Must be Rescued Under the Amended PRMA ActAMP

Cedi Gains Against Dollar Slashed by 22% as Local Currency Ends September at GHS 12.15/$1AMP

Public Debt Stock Pegged at GHS 628bn at End-July 2025; Circa 50% of GDPAMP