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We have sufficient gold to sustain gold-for-oil deal – Bank of Ghana

The Bank of Ghana (BoG) has calmed the fears of Ghanaians over government’s ability to provide enough gold for its Gold for Oil policy. 

The Central Bank says the country has a sufficient quantity of gold reserves to sustain the policy. 

The Director of Financial Market at the Bank of Ghana, Stephen Opata made this known on Monday, January 16, when he appeared before the Public Accounts Committee (PAC).

According to him, there is no cause for concern as the Central Bank is well-positioned to meet the demand for 160,000 ounces of gold per month under the deal.

“As for the quantities, based on the production numbers we saw last year, gold has picked up. We believe that we can buy enough gold to sustain the program. 

“I must say that the numbers we are currently looking at is about 160,000 ounces per month and that will represent about 50 to 60 per cent of the consumption of the country. According to what PMMC indicates, I think we have volumes to support the program,” Mr Opata said. 

The first consignment of oil under the policy arrived at the Tema Port on Monday. 

The 40,000 metric tons of oil from the United Arab Emirates was subsequently discharged to Bulk Oil Storage and Transportation (BOST).

BOST will subsequently formulate plans for its distribution and sale to the Oil Marketing Companies. 

The move is part of the government’s efforts to reduce fuel prices and reserve the country’s forex.

However, some Ghanaians have raised concerns about the government’s ability to sustain the policy.

With this concern, the Bank of Ghana has calmed their fears. 

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