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Ghanaian Politics

We have enough gold to exchange for oil – Deputy Energy Minister

By : cd on 28 Nov 2022, 01:06     |     Source: myjoyonline

Gold

The Deputy Energy Minister, Dr Mohammed Amin Adam, says government is ready to implement its gold-for-oil barter deal.

According to him, the country has enough gold in its reserve to exchange for oil in order to reduce the current skyrocketing prices of fuel.

He made this disclosure while contributing to discussions on JoyNews’ The Probe on Sunday.

“Gold mobilisation and gold purchases are everyday activities. And so we have looked at the market and the Bank of Ghana is already buying gold and they are able to do 50,000 ounces of gold a month. The PMC [Precious Mining Company] also purchase gold from small-scale miners and they are able to buy 160,00 ounces every month. And what we need is 205,000 a month.

“And so 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.

Addressing the matter, Dr Adam said that prior to the announcement of this new policy, government had engaged all relevant stakeholders.

He stressed that it is therefore on the back of positive feedback that the government was confident it can embark on the policy.

“We have been engaging the Bank of Ghana and we also have been talking to oil suppliers. Those who have been supplying petroleum products to our country. We also have been engaging gold refiners and brokers.

“And so extensive discussions and engagements have taken place over the last one month and this is why at this point we can implement that policy, hence, the announcement,” he explained.