Domestic Gold Purchase Programme: Bawumia found a solution to a problem that haunted the Cedi since First Republic - Boako

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.