Chief Executive Officer of the Precious Minerals Marketing Company, Akwasi Awuah, has said he has no doubt the gold-for-oil policy introduced by the Akufo-Addo government is viable.

Some civil society groups and the Ghana Mineworkers Union have raised concerns about the sustainability of the policy of trading its gold reserve for oil on the international commodity market.

They maintain that although the idea is quite innovative, it only appears as a short-term solution to the current economic challenges confronting the country.

General Secretary of the Ghana Mineworkers Union, Abdul Moomin, in an interview said more sustainable measures must be put in place.

“At the end of the day, the expectation is that, if it’s a credible avenue that we can use to leverage the rising cost of petroleum products across the globe and Ghana is not an exception, I think it’s an innovative idea that could be looked at. But it all boils down to how much gold we have in store and how much we are ready to trade," he said.

But speaking on Ghana Kasa show on Kasapa FM/Agoo TV Monday, Mr Akwasi Awuah, said he believes government’s move is the way to go as the policy has helped stabilized the Cedi against the dollar, adding that as long as the policy is in force prices of goods and services will stabilize.

“I see the Gold for Oil very sustainable. If you look at the data, the quantity of gold that is exported every year, particularly sector, if the government had a firmer control over it, things would have been better in this country. This policy has great benefits to the citizenry as fuel prices will stabilize which will also prevent the prices of products from skyrocketing. Again, for the past two weeks after the country took its first delivery of oil, the Cedi has stabilize against the dollar and that is good for the country."

“Few days ago, GOIL reduced diesel price by 4% and they attributed this to the Gold for Oil Policy. If this project is continued it will have a rippling positive on citizenry and the plight of Ghanaians will be relieved from the economic hardship which they are currently facing."

Government of Ghana a fortnight ago took delivery of 41,000 metric tonnes of the petroleum products delivered by SCF YENISEI to be sold by BOST to bulk distributing companies (BDCs) around Ghana.

Valued at $40 million, it was brokered by the Economic Management Team led by Vice President Dr Mahamudu Bawumia.

In November 2022, the government announced plans to buy oil products with gold rather than US dollars.

Vice President Dr Mahamudu Bawumia, said that the move was meant to tackle dwindling foreign currency reserves coupled with demand for dollars by oil importers, which was weakening the local cedi and increasing living costs.

“It will fundamentally change our balance of payments and significantly reduce the persistent depreciation of our currency,” Dr Bawumia said.