Bank of Ghana Governor, Dr Johnson Asiama, halted the Gold-for-Oil programme the previous administration signed the country onto due to what he (Dr Asiama) termed undisclosed policy and operational problems.
The cancellation of the Gold-for-Oil program, in his view, is a significant policy shift in the economic policy of the country. The program was originally intended to wean the nation from the use of foreign exchange for fuel importation and stabilize the local fuel prices. Ghana's Gold-for-Oil programme made financial losses, Dr. Asiama disclosed in an interview with a global wire agency, Bloomberg. The Gold-for-Oil program was making losses, Dr Asiama stated, and it had been suspended in that respect.
We've taken some losses on that, so we've suspended some of the trade," he confirmed. Even though the Gold-for-Oil program has been suspended, however, the Governor of the BoG was optimistic about Ghana's economy, particularly the stability of the Cedi following last year's volatility. According to him, the central bank will also have a robust monetary policy to complement fiscal prudence. We require the appropriate monetary policy posture. According to fiscal discipline obligations under President John Mahama's administration, that would enable us to have stable foreign exchange markets," he explained.
Cancellation of the Gold-for-Oil program is an indicator of economic policy rethinking since the BoG wants to pursue alternative interventions for attaining stable fuel prices. Dr Asiama reaffirmed the central bank's commitment to prudent economic management during the period of the challenges which had disrupted the programme
Post a Comment