Ghana has suspended its gold-for-oil program as newly appointed central bank governor Johnson Asiama shifts focus toward stabilizing the cedi and strengthening monetary policy under President John Mahama’s administration.
The controversial initiative, launched by the previous government, allowed the central bank to purchase domestically mined gold in local currency and use it to barter for oil imports. However, Asiama acknowledged that the program had incurred substantial financial losses, prompting its suspension.
In an interview with Bloomberg, Asiama signaled a policy shift aimed at restoring investor confidence after the cedi plunged 19% against the U.S. dollar last year. He stressed the importance of aligning monetary policies with fiscal measures, particularly as inflation eased to 23.5% in January from previous highs.
“With interest rates at 27% and inflation showing signs of cooling, we are prioritizing disciplined economic management to mitigate exchange rate volatility and rebuild market confidence,” Asiama said.
The suspension of the gold-for-oil scheme is part of broader efforts to stabilize Ghana’s foreign exchange reserves and phase out unconventional financial mechanisms. The central bank plans to transfer responsibility for bullion purchases to a newly established Gold Board, which will oversee the country’s gold reserves and ensure more structured market operations.
The move comes amid Ghana’s ongoing economic recovery following its 2022 debt default, with policymakers working to restore macroeconomic stability and secure long-term financial sustainability.
