The Bank of Ghana (BoG) has announced the suspension of the Gold-for-Oil (G4O) programme due to unspecified policy and operational challenges.
BoG Governor, Dr. Johnson Asiama, confirmed the development in an interview with Bloomberg.
Dr. Asiama attributed the suspension to financial losses incurred, adding that the challenges will be addressed.
“We have had to incur some losses on that, so we have put some suspension on the trade,” he stated. While he did not elaborate on the specific challenges faced, the suspension reflects broader economic adjustments under the new administration,” he said.
Speaking on Ghana’s economic prospects, Dr. Asiama pledged the commitment of the central bank to uphold a prudent monetary policy to support fiscal discipline.
“We intend to maintain an appropriate monetary policy stance. Together with commitments to fiscal discipline under the administration of President John Mahama, this should help us maintain stability in the foreign exchange markets,” he assured.
The immediate past Akufo-Addo-led government introduced the G4O initiative as a strategic measure to stabilize fuel prices and reduce the country’s dependency on foreign oil markets. However, the programme has been mired in allegations of mismanagement and corruption.
Critics have pointed out that the program lacks transparency, with concerns raised over how contracts were awarded and the actual benefits derived from the scheme.
Ahead of the 2024 election, President John Mahama vowed to launch a thorough investigation into the programme, stating it lacks transparency.
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