Bawumia: Why I Came Out With Domestic Gold Purchase Program
The 2028 flagbearer of the New Patriotic Party (NPP) and former Vice President, Dr Mahamudu Bawumia, has explained that the Gold-for-Oil policy and the Domestic Gold Purchase Programme were conceived as emergency measures to help Ghana navigate severe foreign exchange shortages and protect the economy during the crisis that followed the COVID-19 pandemic and the […] The post Bawumia: Why I Came…
Former Vice President and 2028 NPP flagbearer Dr Mahamudu Bawumia explained that the Gold-for-Oil policy and Domestic Gold Purchase Programme were emergency measures devised to help Ghana navigate severe foreign exchange shortages during the crisis following the COVID-19 pandemic and Russia-Ukraine war. These initiatives emerged as international capital markets became inaccessible for several emerging economies, including Ghana, resulting in a balance of payments crisis.
Ghana was particularly constrained in accessing foreign exchange to support essential economic activities and maintain stability in the foreign exchange market. The IMF program also imposed a monthly limit of $80 million for the Bank of Ghana to intervene in the market, which was insufficient to meet Ghana's demands. As the exchange rate depreciated daily, policymakers considered alternative ways to meet Ghana's foreign exchange needs.
Dr Bawumia proposed the Gold-for-Oil program as a response to these constraints. This initiative, which allowed Ghana to exchange gold for oil, prevented a more severe crisis by securing petroleum products for the country.
Written by urgent.news from The Chronicle Ghana's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
