https://en.sputniknews.africa/20250303/ghana-suspends-gold-for-oil-program-as-new-central-bank-chief-aims-for-currency-stability-1070914297.html
Ghana Suspends Gold-for-Oil Program as New Central Bank Chief Aims for Currency Stability
Ghana Suspends Gold-for-Oil Program as New Central Bank Chief Aims for Currency Stability
Sputnik Africa
Introduced by the previous government, the program involved the central bank purchasing gold in local currency and using it to barter for oil imports. However... 03.03.2025, Sputnik Africa
2025-03-03T13:04+0100
2025-03-03T13:04+0100
2025-03-03T13:04+0100
sub-saharan africa
economy
john mahama
ghana
central bank
reforms
currency
west africa
gold
inflation
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Ghana's newly appointed central bank governor, Johnson Asiama, has suspended the country's controversial gold-for-oil program, signaling a shift in economic policy under President John Mahama's administration.In an interview with Bloomberg, Asiama expressed optimism about stabilizing the cedi after its sharp depreciation last year, attributing potential success to stricter monetary and fiscal discipline.With interest rates at 27% and inflation easing to 23.5% in January, the governor reportedly emphasized the importance of aligning monetary policies with fiscal measures to ease price pressures and rebuild confidence following Ghana's 2022 debt default.The decision to suspend the gold-for-oil initiative comes amid efforts to counter the "extreme volatilities" that plagued the cedi, which lost 19% of its value against the dollar last year.Looking ahead, the central bank plans to delegate the role of purchasing bullion to a soon-to-be-established Gold Board, focusing instead on stabilizing the economy. These moves aim to restore stability in foreign exchange markets and reduce reliance on unconventional financial mechanisms.
https://en.sputniknews.africa/20250130/ghana-secures-debt-restructuring-deal-major-step-towards-financial-stability-1070435771.html
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economy, john mahama, ghana, central bank, reforms, currency, west africa, gold, inflation, oil
economy, john mahama, ghana, central bank, reforms, currency, west africa, gold, inflation, oil
Ghana Suspends Gold-for-Oil Program as New Central Bank Chief Aims for Currency Stability
Christina Glazkova
Writer / Editor
Introduced by the previous government, the program involved the central bank purchasing gold in local currency and using it to barter for oil imports. However, the central bank governor acknowledged that the program incurred significant losses and required suspension.
Ghana's newly appointed central bank governor, Johnson Asiama, has suspended the country's controversial gold-for-oil program, signaling a shift in economic policy under President
John Mahama's administration.
In an interview with Bloomberg, Asiama expressed optimism about stabilizing the cedi after its sharp depreciation last year, attributing potential success to stricter monetary and fiscal discipline.
With interest rates at
27% and inflation easing to
23.5% in January, the governor reportedly emphasized the importance of aligning monetary policies with fiscal measures to ease price pressures and rebuild confidence following
Ghana's 2022 debt default.
The decision to suspend the gold-for-oil initiative comes amid efforts to counter the "extreme volatilities" that plagued the cedi, which lost 19% of its value against the dollar last year.
Looking ahead, the central bank plans to delegate the role of purchasing bullion to a soon-to-be-established
Gold Board, focusing instead on stabilizing the economy. These moves aim to restore stability in foreign exchange markets and reduce reliance on unconventional financial mechanisms.
