Political activist, Kwame Asare Obeng, popularly known as A Plus, has expressed his support for the government of Ghana's plan to use gold to purchase refined oil from the international market instead of the United States dollar
According to A Plus, the idea, largely conceptualised by
Vice President Dr Mahamudu Bawumia, is an ‘excellent’ idea and worthy of
applause
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A Plus wrote on Facebook: “Let’s have a conversation: For
over 100 years, Ghana has been a leading producer of gold in the world, yet we
are always in dire need of a paper (dollar) to import petroleum products. I
think the oil for gold initiative is an excellent idea 💡
Africa has all the natural resources the west needs. Why do we trade in dollars?”
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Kwame A Plus put the question up for discussion and whilst
many followers agreed with his prognosis, others also called for Ghana to start
refining its own crude by reestablishing the Tema Oil Refinery (TOR).
The Gold for Oil policy was first announced by Ghana’s Vice
President, Dr Mahamudu Bawumia, in a post on Facebook on on November 24th,
2022.
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Dr Bawumia said: “The demand for foreign exchange by oil
importers in the face of dwindling foreign exchange reserves results in the
depreciation of the cedi and increases in the cost of living with higher prices
for fuel, transportation, utilities, etc. To address this challenge, Government
is negotiating a new policy regime where our gold (rather than our US dollar
reserves) will be used to buy oil products. The barter of sustainably mined
gold for oil is one of the most important economic policy changes in Ghana
since independence,”
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The Vice President continued: “If we implement 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.
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.
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“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.
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“We expect this new framework to be fully operational by the
end of the first quarter of 2023. God bless our homeland Ghana.”
Meanwhile, Vice President Mahamudu Bawumia has said Ghana's
intention to use gold to buy oil should not be misinterpreted as being against
the use of the US dollar.
He opined that it is just a measure to help strengthen the
cedi
SOURCE:PULSE.COM.GH
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