BoG will provide information on the ounces of gold used in oil policy.
The Bank of Ghana (BoG) has assured Parliament’s Public Accounts Committee that it will provide the necessary documentation on the ounces of gold used in the first consignment of gold for the oil deal. The Bank of Ghana, being the central bank of the country, plays a crucial role in maintaining the stability of the country’s economy and monetary system. One of its responsibilities is to provide information and data to the public on various aspects of the economy, including the gold reserves held by the bank.
The government received 40,000 metric tonnes of oil under the agreement in January 2023 as part of its efforts to provide much cheaper fuel options.
Industry experts such as the Institute of Energy Securities and COPEC have urged the government to reveal the amount of gold it exchanged for the 40,000 metric tons of fuel, raising concerns about the deal’s viability.
The First Deputy Governor of the Bank of Ghana (BoG), Maxwell Opoku Afari, told the Public Accounts Committee that the details of the transaction would be presented to the committee in due course.
First Deputy Governor of the BoG, Maxwell Opoku Afari Speaks
“What I can confirm is that the gold is being purchased in local currency [in cedis] so it is a conversion of our local assets into foreign assets, and then it is being purchased at the world market price. We buy gold using market prices from Bloomberg and Reuters.”
“I will beg the committee because I do not have all of the details right now…
The transaction’s specifics would be presented to the committee in due course.”
Meanwhile, the government has stated that the gold for oil policy will not result in immediate fuel price reductions until more consignment arrives in Ghana.
Deputy Energy Minister Andrew Egyapa Mercer stated that the government does not expect fuel prices to change immediately with only 10% of the total deal. BoG
The arrival of the 40,000 metric tons was expected to relieve forex pressures and provide the country with cheaper fuel, but this has not been the case, as fuel prices have increased twice within the period, displeasing the majority of Ghanaians.
Mr Egyapa Mercer, however, told Eyewitness News on Thursday that the first consignment was just part of the pilot process. BoG
“It wasn’t our expectation that it [gold for oil policy] will have an overnight effect because there are stocks that are already on the market, so you cannot expect that an injection of 10 per cent of the gold for oil policy will suddenly change the pricing dynamics. It is a method, not an event.” BoG
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