The Minority in Parliament is calling on government to reinstate the Gold for Oil program, which was cancelled earlier this year, citing concerns about sustainability and execution.
According to them, the initiative remains crucial for stabilizing the Ghanaian cedi amidst ongoing economic challenges.
Ranking Member on Parliament’s Committee on Economy and Development, Kojo Oppong Nkrumah, said government’s decision to cancel the program was premature, especially given current pressures on the local currency.
“Despite the government’s claim that the Gold for Oil program didn’t exist, even the Bank of Ghana admitted that it was operational. The government itself acknowledged it in the past, so this attempt to deny it is pure propaganda,” he said.
Mr. Oppong Nkrumah emphasized that interventions such as the Central Bank’s forex support and the Gold Purchase Program, originally introduced by the previous administration, have been key drivers of recent market stability.
“Today, gold prices are high, and that has helped. But prices will not stay high forever. That’s why the approach we’re using now is not sustainable,” he warned.
“The IMF has already cautioned government against injecting $1.4 billion every six months into the market, it’s simply not feasible long term.”
He further recommended that the government take urgent steps to strengthen the supply side by ensuring that export proceeds and foreign exchange earnings are properly repatriated and accounted for within the Ghanaian economy.
“We need better enforcement of LOC (Letter of Credit) requirements. On the demand side, the government must also examine the major components driving forex demand and consider reintroducing the Gold for Oil Program as a buffer,” he added.
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Source: Comfort Sweety Hayford/ATLFMNEWS
