Ghana pays for oil in gold instead of dollars

According to the report of Fars International Economic Group, quoted by Rashatodi, the Vice President of Ghana, Mahamudu Bawumia, announced that the country’s oil will be traded with gold instead of dollars.

He said the reason for this is to protect the country’s dwindling foreign exchange reserves.

Ghana’s gross international reserves declined from $9.7 billion at the end of 2021 to about $6.6 billion at the end of September 2022, official statistics show.

These reserves cover only 3 months of imports of goods and services of this country.

The policy of gold against oil is expected to be implemented in the first quarter of 2023 in order to deal with inflation caused by the devaluation of the national currency.

The Ghana cedi (Ghana’s currency) has lost more than half its value against the dollar so far this year due to strong demand for the dollar from oil importers, Bawumia explained.

Although Ghana is an oil producer, due to the closure of its only refinery since 2017, it has to import products such as gas and diesel.

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