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Ghana not against US dollar | Bawumia: Gold-for-oil scheme to stop cedi depreciation

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Vice President Mahamudu Bawumia has said Ghana’s intention to use gold to buy oil should not be misinterpreted as being against the use of the US dollar.

He said it is just a measure to help strengthen the cedi.

At the AGI Awards night in Accra, Dr Bawumia explained: “To address this fundamental challenge that we all face of depreciation and its impact on fuel and utility prices and food and so on, the government has opted to implement a policy of using our gold to buy oil products”

“If we implement it as we have envisioned, it will fundamentally change our balance of payment and significantly reduce the persistent deprecation of our currency,” he added.

“This has been misrepresented as Ghana being against the use of the US dollars in International transactions. This is not the case. We are not on any mission against the use of the dollars in international transactions, far from it. In fact, we want to accommodate all US dollars in our reserves. But we have a specific issue to deal with oil imports and the prices of fuel, food and transport and utilities that’s essentially what we are targeting,” Dr Bwumia notedhe.

The vice president recently announced the gold-for-oil via Facebook.

“As part of measures to operationalise the government’s use of gold to purchase oil products, the Minister of Lands and Natural Resources, Mr Samuel A. Jinapor has just issued the following directives”, wrote theh Vice President.

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