Bank Of Ghana Pulls Plug On ‘Mysterious’ Gold-For-Oil Scheme

The Bank of Ghana (BoG) governor has made a bold move by suspending the Gold-for-Oil (G4O) programme, an initiative rumored to have been championed by ex-vice president Dr Mahamudu Bawumia.

Dr Johnson Pandit Asiama dropped the bombshell in an interview with New York City-based Bloomberg, revealing that the programme has hit a dead-end due to its vague nature and operational complications.

Opposition party National Democratic Congress (NDC) wasted no time in criticizing the murky implementation of the scheme.

Dr Asiama spilled the beans, admitting that the programme incurred financial losses, forcing the need to put it on ice temporarily. “We’ve taken some hits on that, so we’ve hit the pause button on the trade,” he remarked.

The governor then shed light on the new leadership’s game plan, asserting, “We’re sticking to the right monetary policy approach. Alongside commitments to financial prudence under President John Mahama’s administration, this should allow us to keep the foreign exchange markets stable.”

Despite the hurdles faced with the suspension, Dr Asiama assured that the bank remains dedicated to steering the economy effectively through the storm.

This policy shake-up didn’t catch many off guard, as Dr Asiama had been critical of it since last August, flagging it as lacking transparency and suggesting an alternative course of action had he been at the helm.

In an exclusive sit-down on ‘Upfront’ with Joy News, the former deputy governor mapped out his vision, ensuring that the central bank wouldn’t carry the burden of the implementation.

Dr Asiama unleashed a bombshell, alleging that the proceeds from the transactions were flowing elsewhere apart from the BoG, causing a headache for the bank.

As the saga unfolds, Dr Asiama hinted at a petition from industry players urging Parliament to probe the programme, proposing that the government adopts different strategies to quell the Cedi’s woes instead of persisting with the underperforming ‘gold-for-oil’ initiative.

Down the NDC’s path, Dr Asiama pledged to revamp the ‘gold-for-oil’ programme by rerouting it away from the Bank of Ghana, involving a private entity and drafting a much-needed policy document.

The ex-deputy governor spotlighted further flaws in the programme, questioning the lack of clarity and transparency in its execution.

In the end, Dr Asiama lamented that what was once hailed as a dollar-saving success has transformed into a Central Bank’s nightmare, underscoring the tumultuous journey of the gold-for-oil programme.