Dr. Mohammed Amin Adam, the deputy energy minister, claims that the government is prepared to carry out its gold-for-oil barter agreement.
He claims that the nation has enough gold in its reserves to trade for oil in order to lower the increasing gasoline costs that are now in effect.
He revealed this on Sunday’s episode of JoyNews’ The Probe, monitored by Ghanatodayonline.com.
According to him Gold purchases and mobilization are routine tasks. Government have examined the market, and the Bank of Ghana is already capable of purchasing 50,000 ounces of gold each month.
The PMC (Precious Mining Company) is able to purchase 160,00 ounces of gold every month from small-scale miners and government require 205,000 each month.
“If you look at our oil bill vis-à-vis the worth of the gold we are able to mobilize monthly, there is no doubt that we’ll be able to get the required gold to exchange for the requirement of our petroleum products and so we are very confident that this is a policy we can implement without difficulties,” he said.
Government on Thursday revealed that it is negotiating a gold-for-oil barter deal to address the country’s “dwindling foreign exchange reserves” to procure oil products.
Since Vice, President Mahamudu Bawumia announced this, many have wondered if the necessary consultation have been held.
In response to the issue, Dr. Adam stated that the administration has spoken with all pertinent parties before announcing this new policy.
He emphasized that the administration was confident in its ability to implement the program because of the good response.
“We have been speaking with oil suppliers as well as the Bank of Ghana those who have been giving our nation petroleum products.
We have also been working with dealers and refiners of gold. We can now execute that policy, which is why there have been intensive conversations and interactions over the past month; therefore, the announcement,” he said.