Government of Ghana is Ready and it has enough gold to exchange for oil – Deputy Energy Minister

According to 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 fuel prices that are now in effect.

“Gold purchases and mobilization are routine tasks. We have thus 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 per month from small-scale miners. And we require 205,000 each month.

There is therefore no question that we will be able to obtain the necessary gold to exchange for the requirement of our petroleum products if you compare the cost of our oil bill to the worth of the gold we are able to mobilize on a monthly basis, and so we are very confident that this is a policy we can implement without difficulties, the official said.

On Thursday, the government said that it is negotiating a gold-for-oil barter agreement to solve the nation’s “dwindling foreign exchange reserves” for the purchase of oil goods.

Since Vice-President Mahamudu Bawumia made this announcement, many have questioned if the required consultations have been held.

Dr. Adam addressed the issue and stated that the government has consulted with all necessary parties before announcing this new policy.

He emphasized that the government was confident in its ability to implement the program because of the positive 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 brokers and refiners of gold.

The announcement was made because “extensive conversations and engagements have thus taken place over the course of the last one month, and this is why at this point we can implement that policy,” the Minister added.