Source: newsthemegh.com
Citing worries over transparency, opposition flagbearer John Dramani has promised to look into the government’s gold-for-oil strategy should he win the president.
Mr. Mahama claims that the agreement is unclear and calls for a thorough investigation.
The government introduced the gold-for-oil agreement in 2021 in an effort to solve the cedi’s depreciation and the increase in fuel prices.
Speaking at the University of Energy and Natural Resources (UENR) in Sunyani for the 3rd Annual Transformational Dialogue on Small-scale Mining, the head of the main opposition National Democratic Congress stressed the need to review the agreement.
“We will investigate the opaque gold for oil programme and expose the actors benefiting from this so-called barter agreement. Reports reaching me suggest that a new debt burden is being created because Ghana has not been able to keep up with its delivery of gold under the programme.” he addressed.
As part of measures to address Ghana’s declining foreign exchange reserves and the demand for dollars by oil importers—factors contributing to the weakening of the Cedi and rising living expenses—Vice President Mahamudu Bawumia proposed the strategy in 2022.
As part of the G4O initiative, Ghana wants to trade gold for oil at a competitive price in order to stabilize the Cedi, reduce the impact of rising fuel prices, and address balance of payments problems.
More than 60,000 ounces of gold worth over $97 million had been acquired from nearby mines as of March 2023.
To meet around half of the nation’s monthly oil demand, the Precious Minerals Marketing Company (PMMC) aims to purchase at least 160,000 ounces of gold, which is worth at over $300 million.