A former New Patriotic Party MP for Nsuta Kwaman Beposo constituency, Hon. Kwame Asafoagyei has taken Vice President Dr. Mahamudu Bawumia to the cleaners over the gold for oil policy.
According to the former lawmaker, the policy has created a platform to which some former MPs are opposed because it is not sustainable.
According to him, when the vice president introduced this policy, there was a lot of debate because some NPP party members did not get it right as heated debates mounted on their platforms.
He claims that the agreement has yet to be approved by Parliament.
“When the policy was implemented, it sparked a heated debate on our platforms. I respect him, but I must state unequivocally that the policy he has implemented is unsustainable. You wish to exchange Ghana’s gold for oil. We don’t know how many ounces of gold you’d like to trade. The policy is untenable.”
He claimed that the rise in fuel prices has demonstrated that this policy is unsustainable.
“With this policy, we have accomplished nothing. The cedi continues to fall in value against the US dollar. We must tread carefully. You are attacked when you criticise. This is an election year, so before we implement any policies, we must examine them to ensure that they are viable and that Ghanaians understand them.”
”I am certain the policy did not go for approval. If that was the case, then we have a problem.”
He said Ghanaians need a blueprint in the policy to show to explain the objectives and expected outcomes.
The gold for oil policy refers to the practise of purchasing oil products with gold rather than US dollar reserves.
It is intended to address dwindling foreign currency reserves as well as oil importers’ demand for dollars, which weakens the Ghana cedi and raises living costs.
Dr. Bawumia explained in November that the Gold for Oil policy was not an attempt by the country to abandon the use of the US dollar in international transactions.
Dr. Bawumia stated at the 2022 AGI Awards in Accra that, on the contrary, Ghana’s gold for oil programme will allow the country to accumulate more international reserves by saving the $3 billion it spends on oil imports.
He went on to say that the use of gold was specifically for oil imports due to declining foreign exchange reserves.
By: Rainbowradioonline.com/Ghana
