The Ghanaian government is working on a new policy to buy petroleum products using gold reserves rather than the US dollars, the country's Vice President Mahamudu Bawumia said on Thursday
MOSCOW (Pakistan Point News / Sputnik - 25th November, 2022) The Ghanaian government is working on a new policy to buy petroleum products using gold reserves rather than the US Dollars, the country's Vice President Mahamudu Bawumia said on Thursday.
"The demand for foreign exchange by oil importers in the face of dwindling foreign exchange reserves results in the depreciation of the cedi and increases in the cost of living with higher prices for fuel, transportation, utilities, etc. To address this challenge, Government is negotiating a new policy regime where our gold (rather than our US Dollar reserves) will be used to buy oil products," the vice president said on social media.
According to Bawumia, the move to buy petroleum products with Ghana's mined gold will be one of the most important changes in the country's economic policy since its independence from British colonial rule.
The vice president added he hoped the new system would be fully operational by the end of the first quarter of 2023.
Western countries have been seeking ways to limit Russia's income from oil and gas exports since the country launched a military operation in Ukraine on February 24. In September, the G7 finance ministers confirmed their intention to impose the price cap on Russian oil and urged all nations to support the initiative. In October, the EU introduced its eighth package of sanctions against Moscow, which included a legislative basis for setting the price cap for maritime shipments of Russian oil to third countries.
