Many are disappointed ‘Gold for Oil’ policy is working – Bawumia jabs

Vice President Dr Mahamudu Bawumia has taken a swipe at critics of the gold-for-oil (G4O) policy introduced a couple of months ago, saying they are “very disappointed” it is working.

He said the policy since its introduction has seen a reduction in fuel prices and buyers itsare expected to see further reduction from Thursday, March 16.

“There is more to come. This is just the third month of the operation of the policy,” he noted on Wednesday, March 15 at a forum organised by the Bulk Oil Storage and Transportation (BOST) Company Limited.

“Some people said it would not work [and that] Ghana doesn’t have enough gold. How can you say that? We’ve been mining this gold for 200 years and they keep taking it out and it cannot work for us? It doesn’t make sense.

“There are people who are very disappointed that it is working but bleeding is allowed. We have an impossibility mindset. They can keep to it but for us all things are possible by the grace of God.”

Vice President announced the Gold for Oil Policy in November last year as part of efforts to, inter alia, stabilise the forex market and ensure that the Cedi does not depreciate against its major trading currencies.

The first consignment was received in January.

Dr Bawumia said G4O is one of the policies since independence to address the balance of payment crisis faced in the economic sector.

“In my humble opinion, this is the most important macro-econimic policy intervention to deal with the exchange rate depreciation, fuel price-food price-inflation nexus that we have had. We have not only seen a decline in prices from the GH¢23 per litre to around GH¢12 per litre but we have also seen stability in the exchange rates as we predicted.”