AUGAF
  • Home
  • Politics
  • Business
  • National
  • News
  • Finance
  • Technology
  • Sports
  • International
  • CommoditiesNew
  • Contact
No Result
View All Result
PSX
Currencies
  • Home
  • Politics
  • Business
  • National
  • News
  • Finance
  • Technology
  • Sports
  • International
  • CommoditiesNew
  • Contact
No Result
View All Result
AUGAF
No Result
View All Result
Home Business

Ghana plans to buy oil with gold instead of U.S. dollars

admin-augaf by admin-augaf
November 25, 2022
in Business, Finance, International
Reading Time: 3 mins read
0
Ghana plans to buy oil with gold instead of U.S. dollars
Share on FacebookShare on TwitterWhatsapp

Accra November 25 2022: Ghana's government is working on a new policy to buy oil products with gold rather than U.S. dollar reserves, Vice-President Mahamudu Bawumia said on Facebook on Thursday.

The move is meant to tackle dwindling foreign currency reserves coupled with demand for dollars by oil importers, which is weakening the local cedi and increasing living costs.

Ghana's Gross International Reserves stood at around $6.6 billion at the end of September 2022, equating to less than three months of imports cover. That is down from around $9.7 billion at the end of last year, according to the government.

2 minute readNovember 24, 202211:58 PM GMT+5Last Updated 9 hours ago
Ghana plans to buy oil with gold instead of U.S. dollars
Reuters
Ghana's Vice-President Mahamudu Bawumia is sworn in at the Independence square in Accra
Ghana's Vice-President Mahamudu Bawumia is sworn in at the Independence square in Accra, Ghana January 7, 2017. REUTERS/Luc Gnago/File Photo
ACCRA, Nov 24 (Reuters) - Ghana's government is working on a new policy to buy oil products with gold rather than U.S. dollar reserves, Vice-President Mahamudu Bawumia said on Facebook on Thursday.

The move is meant to tackle dwindling foreign currency reserves coupled with demand for dollars by oil importers, which is weakening the local cedi and increasing living costs.

Ghana's Gross International Reserves stood at around $6.6 billion at the end of September 2022, equating to less than three months of imports cover. That is down from around $9.7 billion at the end of last year, according to the government.

Advertisement · Scroll to continue
If implemented as planned for the first quarter of 2023, the new policy "will fundamentally change our balance of payments and significantly reduce the persistent depreciation of our currency," Bawumia said.

Using gold would prevent the exchange rate from directly impacting fuel or utility prices as domestic sellers would no longer need foreign exchange to import oil products, he explained.

"The barter of gold for oil represents a major structural change," he added.

The proposed policy is uncommon. While countries sometimes trade oil for other goods or commodities, such deals typically involve an oil-producing nation receiving non-oil goods rather than the opposite.

Ghana produces crude oil but it has relied on imports for refined oil products since its only refinery shut down after an explosion in 2017.

Bawumia's announcement was posted as Finance Minister Ken Ofori-Atta announced measures to cut spending and boost revenues in a bid to tackle a spiraling debt crisis.

In a 2023 budget presentation to parliament on Thursday, Ofori-Atta warned the West African nation was at high risk of debt distress and that the cedi's depreciation was seriously affecting Ghana's ability to manage its public debt.

The government is negotiating a relief package with the International Monetary Fund as the cocoa, gold and oil-producing nation faces its worst economic crisis in a generation.


Related Posts

Oil prices end week on multi-month lows on recession fears

Attock Petroleum holds leasehold rights of 56% service areas located on Motorway: PSX

Oil prices fall, taking a breather from massive surge

Oil Falls as Expected Interest Rate Hikes to Impact Fuel Demand


Tags: OILOPEC
admin-augaf

admin-augaf

Related Posts

Pakistan Starts Sovereign VC Fund to Lure Startup Investors Back
Business

Pakistan Starts Sovereign VC Fund to Lure Startup Investors Back

December 3, 2023
Abu Dhabi Masdar To Develop 150MW Solar Plant in Angola
Business

Abu Dhabi Masdar To Develop 150MW Solar Plant in Angola

December 3, 2023
Abu Dhabi Masdar Aims to Become One of World’s Largest Renewable Energy Provider
Business

Maple Leaf Cement To Install 25 MW Solar Power Plant To Lower Power Cost

December 2, 2023

Recent News

Pakistan Starts Sovereign VC Fund to Lure Startup Investors Back

Pakistan Starts Sovereign VC Fund to Lure Startup Investors Back

December 3, 2023
Abu Dhabi Masdar To Develop 150MW Solar Plant in Angola

Abu Dhabi Masdar To Develop 150MW Solar Plant in Angola

December 3, 2023
Abu Dhabi Masdar Aims to Become One of World’s Largest Renewable Energy Provider

Maple Leaf Cement To Install 25 MW Solar Power Plant To Lower Power Cost

December 2, 2023
Pakistan Household Inflation Increases for the Fourth Consecutive Week to 48.02%

Pakistan To Cut Policy Rate From March

December 2, 2023
120 Countries Backed UAE COP28 Climate And Health Decleration

120 Countries Backed UAE COP28 Climate And Health Decleration

December 2, 2023

Popular News

  • NSS

    President Prohibit National Savings For Changing Rates on Existing Certificates Retrospectively

    0 shares
    Share 0 Tweet 0
  • Pakistan Rupee Appreciate against Dollar in Interbank as IMF Confirmed Board Review Date

    0 shares
    Share 0 Tweet 0
  • Pakistan Rupee Fall After 13 Days of Successive Gains against Dollar on Lower Remittances and Strengthening of US Dollar

    0 shares
    Share 0 Tweet 0
  • Pakistan Central Bank Issued Show Cause Notice to Eight Banks Over Currency Speculation

    0 shares
    Share 0 Tweet 0
  • Pakistan Rupee Fall for the Straight Second Day Against Dollar on Opening of LCs

    0 shares
    Share 0 Tweet 0

Categories

  • Budget
  • Business
  • Culture
  • Finance
  • International
  • National
  • News
  • Politics
  • PTI
  • Sports
  • Technology
AUGAF Logo

Follow us on social media:

Recent News

  • Pakistan Starts Sovereign VC Fund to Lure Startup Investors Back
  • Abu Dhabi Masdar To Develop 150MW Solar Plant in Angola
  • Maple Leaf Cement To Install 25 MW Solar Power Plant To Lower Power Cost

Category

  • Budget
  • Business
  • Culture
  • Finance
  • International
  • National
  • News
  • Politics
  • PTI
  • Sports
  • Technology

Recent News

Pakistan Starts Sovereign VC Fund to Lure Startup Investors Back

Pakistan Starts Sovereign VC Fund to Lure Startup Investors Back

December 3, 2023
Abu Dhabi Masdar To Develop 150MW Solar Plant in Angola

Abu Dhabi Masdar To Develop 150MW Solar Plant in Angola

December 3, 2023
  • Home
  • Politics
  • News
  • Business
  • National
  • Finance
  • Technology
  • International

© 2021 AUGAF.

No Result
View All Result
  • Home
  • Politics
  • Business
  • National
  • News
  • Finance
  • Technology
  • Sports
  • International
  • Commodities
  • Contact

© 2021 AUGAF.