Ghana’s government is negotiating a new policy regime where it will use its gold rather than its U.S. dollar reserves to buy oil products, Vice-President Mahamudu Bawumia said in a Facebook post on Thursday. Reuters first reported this story.
What Happened: In a post titled “The Use of Gold To Buy Imported Oil Products,” Bawumia pointed out the demand for foreign exchange by oil importers amid dwindling foreign exchange reserves results in the depreciation of the cedi, Ghana’s currency, and raises the cost of fuel, transportation, utilities, etc.
The cedi has depreciated by more than 50% against the dollar over the last year.
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To address this challenge, the government is negotiating a new policy regime where its gold, rather …