Gold for oil strategy is absurd, says Kennedy Agyapong to the government

He claimed that Ghanaians don’t understand the gold for oil policy.

The unconventional politician stated that the government should pursue a path of refining the mineral and adding value to the mineral before selling it, adding that the money accumulated from the finished gold products will be sufficient to buy the oil. The interview was broadcast on Kumasi-based Sompa FM.

“Do you think it makes sense to purchase oil using gold? Why not sell your gold, make some cash, and then go buy some oil?” He queried.

Oil for gold trade deal

The strategy of using gold reserves rather than U.S. dollar reserves to purchase oil products aims to address declining foreign exchange reserves and the demand for dollars by

Vice President Dr. Mahamudu Bawumia stated that the new program, which intends to buy oil products in return for gold, is expected to save the government roughly US$3 billion in foreign exchange per year.

He said that the strategy that will be put into place in the first quarter of the following year might also lessen some of the pressure the cedi is under from inflation.