Ghana’s newly appointed central bank governor, Dr. Johnson Asiama, has announced the suspension of the Gold-for-Oil program, a key initiative launched under the Akufo-Addo administration to reduce dependency on foreign currency for fuel imports. The decision comes as the Bank of Ghana shifts its priorities to stabilizing the nation’s currency amidst ongoing economic challenges.
In an interview with Bloomberg on Friday, February 28, 2025, Dr. Asiama explained that the program, while ambitious, encountered significant policy and operational hurdles, resulting in financial losses.
“We have had to incur some losses on that, so we have put a suspension on the trade,” he stated.
The Gold-for-Oil initiative was introduced with the aim of using Ghana’s gold reserves to pay for petroleum imports, thereby alleviating pressure on the cedi. However, its implementation faced several challenges, including inefficiencies and unanticipated market dynamics, which ultimately rendered the program unsustainable.
Dr. Asiama, who assumed leadership of the Bank of Ghana earlier this year, emphasized his commitment to restoring economic stability through a disciplined monetary policy framework.
“Our focus is on maintaining an appropriate monetary policy stance. Together with fiscal discipline under President John Mahama’s administration, we are confident this will stabilize the foreign exchange markets and bring relief to the cedi,” he said.
The suspension of the program marks a shift in Ghana’s economic strategy under the Mahama-led government. Dr. Asiama underscored the importance of exploring alternative measures to manage fuel prices and mitigate inflation while addressing structural issues in the economy.
Stakeholders have welcomed the central bank’s renewed emphasis on stability but remain cautious about the potential short-term impacts on fuel prices and inflation. Analysts are closely monitoring how the suspension and accompanying policy shifts will influence Ghana’s economic recovery in the coming months.
As the nation grapples with rising debt and external economic pressures, the move signals a recalibration of priorities, with a clear focus on long-term sustainability over experimental trade mechanisms.
Story by: Mercy Addai Turkson #ahotoronline.com
