Governor of the Bank of Ghana (BoG), Dr Ernest Addison, has stated that the gold-for-oil programme has yielded positive results after the first eight months of its implementation.

According to the governor, the gold for oil programme does not only focus on buying oil but also shore up the country’s gold reserves.

“We are not only buying Gold for Oil. We are also buying Gold for international reserves. This is an area where we have chalked a number of successes. I believe we have almost doubled our holdings of gold in the short period that we started – from eight tonnes to almost 15 tonnes. So, the gold of oil has been a successful program”, Governor Addison said during the 112th Monetary Policy Committee press conference on May 22, 2023.

The Gold-for-oil policy was initiated as a response to the rapid depreciation of the cedi and the increasing cost of fuel.

So far, Ghana has received over 60,000 metric tonnes of fuel through the programme.

Dr. Ernest Addison also noted that as of May 19, 2023, after the first tranche of the $3 billion International Monetary Fund loan hit the Bank of Ghana’s account, Ghana’s gross international reserves have increased to $5.7 billion.

This is indicative of 2.6 months of import cover.

He made the statement at the 112th Monetary Policy Committee meeting on May 22, 2023.

He said: “Gross International Reserves at the end of March 2023 stood at US$5.1 billion, equivalent to 2.4 months of import cover, compared with the end-December 2022 stock position of US$6.2 billion, equivalent to 2.7 months of import cover. Gross International Reserves, excluding oil funds, encumbered and pledged assets, stood at US$1.4 billion.”

“Net International Reserves as of March 2023 stood at US$2.1 billion. With the approval of the IMF-supported programme and receipt of the first tranche of the disbursement, Gross International Reserves have increased to US$5.7 billion as of Friday, 19th May 2023, equivalent to 2.6 months of import cover,” he added.

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