Mining companies in the country have been consulted by government to help make the gold for oil deal a success.
The companies are to supply about 20% of their annual gold production to support the policy.
Oil for Gold policy is a new initiative by government to buy oil products with gold rather than buying oil with US dollars.
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.
Using gold for oil 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.
The barter of gold for oil represents a major structural change, according to government of Ghana.
This policy has made several stakeholders wonder where government will get the gold for such policy and its feasibility.
But Group Corporate Affairs Manager, Golden Stars Resources Ltd, Gerard Hillary Osei Boakye in an interview with Akua Boakyewaa Yiadom on Burning Issues on Adom FM said government through Chamber of Mines has told the mining companies to provide twenty percent (20%) of their gold they produce yearly for their programme.
He stated that, government will buy the gold with cedis and by so doing, the companies will not have to export the gold in exchange for foreign currencies.
“We have been told to give 20% of our annual gold production, so it up to the companies to decide how much percentage they will be able to give per week for the exportation” he said.
Group Corporate Affairs Manager, Golden Stars Resources Ltd explained further that last year, government bought about five thousand (5,000 ounces) from Golden Stars Resources Ltd in the country.
“As corporate responsible company, you must help in you small way in growing the economy developing the country so we are not worried about the call” Mr. Osei Boakye added.