Governor of the Bank of Ghana, Dr. Ernest Addison, has described the Gold4Oil policy as a good one despite its limitations.
He claimed that the policy played a crucial role during the economic crisis.
The governor made the remarks when he appeared before the Public Accounts Committee (PAC) on Monday, April 8, 2024.
He said the initiative among others helped in decreasing oil prices compared to those in 2022.
In his view, the government could continue to rely on the policy even if oil prices rise, opposing any potential discontinuation.
“This is an intervention which was very critical in the heat of the crisis, yes the foreign exchange market is functioning better than it was in 2022. Oil prices have come down much better than they were in 2022. The situation is much better now than it was in 2022 when the Gold4Oil policy was introduced.
“However, we think that it’s still an important programme for the government to have that option and to be able to empower commercial banks to undertake their activities. Should market sentiments change, which do every day, we don’t know what will happen tomorrow. And we will wake up and if we find ourselves in a situation where the prices are driving the pumps to where they were again. The government has an option to fall on. It’s a very innovative instrument.”
“There is going to be a big jump in gold holdings for Ghana,” he said.
Meanwhile, he has also indicated that Ghana’s economy is on an upward trajectory compared to previous years.
He thanked Parliament for authorising the addition of $300 million to Ghana’s reserves, a move aimed at boosting the economy.
“For the economy as a whole, I can tell you that things are improving, our foreign exchange reserve levels are improving. Thanks to Members of Parliament who recently approved a facility, so $300 million was added to our reserves.
“All of that strengthens our position to support you [government] in executing these type of projects.”
When queried about the possibility of payments being made to aid in the execution of ongoing projects, he said, “Rest assured that so long as the economy continues on the path that we are on, we should be able to help you [government] deliver.”
By: Rainbowradioonline.com/Ghana
