Source: newsthemegh.com
The combined capitalized cost for the Gold for Oil (G40) operations as of December 31, 2023, was GH¢2.43 billion, according to information released by the Bank of Ghana (BOG).
The bank reported in its 2023 annual financial report that the carrying amount included GH¢520 million for cash balance, GH¢410 million for dore gold holdings in the vault, GH¢1.72 billion for outstanding oil value of shares, and GH¢460 million for oil revenues receivable.
In 2023, the central bank still owed GHS 680 million for gold holding acquisitions, according to the report.
The Ghanaian government launched the Gold for Oil (G4O) program in an effort to stimulate the importation of petroleum products into Ghana by offering import credit facilities through the already-existing BOG Domestic Gold Purchase (DGP) program.
Lower ex-pump prices in the nation were predicted as a result of lessening foreign exchange pressures, declining international oil traders’ premiums, and value chain efficiency benefits.
The government launched the Gold for Oil (G4O) Program in December 2022 in response to the rising cost of petroleum products, which increased by GH¢6.90 per liter on average in January 2022 to GH¢22.8 per liter in December 2022.
Therefore, the goal of the G4O Program was to use the Bank of Ghana’s current DGPP to facilitate the competitive importation of sufficient amounts of petroleum products into Ghana.
The Bank of Ghana would buy dore gold produced and exported by businesses with licensed small-scale concessions, including community mines through the PMMC, under the terms of the G4O program, according to the BOG.
According to the bank, the bought dore gold was either settled through a gold barter arrangement with the petroleum suppliers or with the foreign exchange (FX) revenues of the gold sold to pay for the petroleum products provided to Ghana.
In addition to supporting relative foreign exchange market stability and the disinflation process, the DGPP was accomplishing its goals of increasing reserves.
The report states that the bank examined all contracts between the bank and all program participants in an effort to allay serious auditing concerns over the program.