Vice President Dr. Mahamudu Bawumia has said government is negotiating a new policy that seeks to ensure the country purchases imported oil products with gold rather than foreign exchange.

In a Facebook post on November 24, 2022, the Vice President said the policy is expected to take effect by the end of the first quarter of 2023 and form parts of effort to address the persistent depreciation of the cedi.

He explained that once the policy is implemented, “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”

“This is because the exchange rate (spot or forward) will no longer directly enter the formula for the determination of fuel or utility prices since all the domestic sellers of fuel will no longer need foreign exchange to import oil products,“ the Vice president said.

“The barter of gold for oil represents a major structural change. My thanks to the Ministers for Lands and Natural Resources, Energy, and Finance, Precious Minerals Marketing Company, and the Governor of the Bank of Ghana for their supportive work on this new policy. We expect this new framework to be fully operational by the end of the first quarter of 2023. God bless our homeland Ghana,” Dr. Bawumia wrote.

See Dr. Bawumia's full speech below: