Seasoned Journalist, Kwesi Pratt Jnr. has lauded the move by government to use the country's gold reserves to pay for oil.

The government is working on a new policy to buy oil products with gold, Vice President, Mahamudu Bawumia, announced the move on Thursday.

This policy is meant to tackle the dwindling foreign currency reserves coupled with the demand for dollars by oil importers which is weakening the cedi and increasing living costs.

When 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.

“The barter of gold for oil represents a major structural change,” he added.

The government estimates to reap revenues to the sum of $3 billion from this trade.

Dr. Bawumia also dispelled rumours that this move is against the use of the US dollar in international transactions.

“Unfortunately some people have misinterpreted this as Ghana being against the use of the US dollar in international transactions. Far from it. We want to accumulate more US dollar reserves in the future”, he noted while speaking at the 2022 AGI Awards in Accra.

He further said; ”If we implement the gold for oil policy as it as envisioned, it will fundamentally change our balance of payments and significantly reduce the persistent depreciation of our currency with its associated increases in fuel, electricity, water, transport and food prices."

Kwesi Pratt Jnr applauded the government's efforts to strengthen the local currency and improve lives through the use of the country's gold to purchase oil which will give the nation 3 billion dollars worth of profits.

"For me, this policy will help us a lot because, according to the Vice President, when we use the gold to buy oil, we will get at least 3 billion. This is even more than the money we are seeking from IMF," he told host Kwami Sefa Kayi on Peace FM's morning show "Kokrokoo".

He, however, disagreed with the Vice President on his clarification that this policy is intended against the dollar.

Mr. Pratt asked "why should we apologize for doing the right thing?" as, to him, the government owes no one an apology if it is adopting a policy that will give the cedi strength over the foreign currencies.