Bank of Ghana Suspends Gold-for-Oil Programme Over Policy Challenges

The Bank of Ghana (BoG) has halted the Gold-for-Oil (G4O) programme due to unspecified policy and operational difficulties, Governor Dr. Johnson Asiama has confirmed.

In an interview with Bloomberg, Dr. Asiama revealed that financial losses prompted the suspension of the initiative.

“We have had to incur some losses on that, so we have put some suspension on the trade,” he explained. Although he did not detail the exact issues, the decision aligns with broader economic adjustments under the new administration.

Discussing Ghana’s economic outlook, Dr. Asiama reaffirmed the central bank’s commitment to maintaining a disciplined monetary policy to support fiscal stability.

“We intend to maintain an appropriate monetary policy stance. Alongside fiscal discipline under President John Mahama’s administration, this approach should help stabilize the foreign exchange markets,” he assured.

The G4O programme was introduced by the previous Akufo-Addo government as a strategy to stabilize fuel prices and reduce dependence on foreign oil markets. However, the initiative has faced allegations of corruption and mismanagement.

Critics argue that the programme lacked transparency, raising concerns about contract awards and the actual benefits derived.

Ahead of the 2024 elections, President Mahama pledged to launch a full investigation into the initiative, citing the need for greater transparency and accountability.