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Citing operational and policy issues that have resulted in losses, the Bank of Ghana (BoG) has announced the suspension of the Gold-for-Oil program.
The program, which aimed to stabilize domestic fuel prices and lessen dependency on foreign exchange for fuel imports, has been temporarily put on hold while the Central Bank reviews its economic policies.
BoG Governor Dr. Johnson Asiama admitted the difficulties in an interview with Bloomberg, saying, “We have had to incur some losses on that, so we have put some suspension on the trade.”
The decision fits with a larger policy shift under the new administration, even though Dr. Asiama did not go into detail about the particular difficulties.
He is nevertheless confident about Ghana’s economic prospects, especially the stability of the cedi, which saw a great deal of volatility last year, even though the program has been suspended.
“We intend to maintain an appropriate monetary policy stance. Together with commitments to fiscal discipline under the administration of President John Mahama, this should help us maintain stability in the foreign exchange markets,” he added.
Source: Ghanatodayonline.com
