The government’s first shipment of gold for oil policy arrived at Tema Port and was discharged into the receptacles of Bulk Oil Storage and Transportation Company (BOST).
According to the state-owned Daily Graphic, the 41,000 metric tonnes of petroleum products delivered by SCF YENISEI will be sold by BOST to bulk distributing companies (BDCs) across Ghana.
It was negotiated by the economic management team led by Vice-President Dr. Mahamudu Bawumia and valued at $40 million.
In November 2022, the government announced plans to purchase oil products in gold rather than US dollars.
Vice-President Bawumia stated that the move was intended to address dwindling foreign currency reserves and the demand for dollars by oil importers, which was causing the local cedi to weaken and living costs to rise.
“It will fundamentally change our balance of payments and significantly reduce our currency’s persistent depreciation,” Bawumia said.
He went on to say that using gold would keep the exchange rate from directly impacting fuel or utility prices because domestic sellers would no longer need foreign currency to import oil products.
According to a source familiar with the process, the first consignment cost $40 million in gold.
According to the source, BOST would sell the product to the BDCs, with the proceeds going into an escrow account at the Bank of Ghana for the purchase of gold for the process.
The ministers of Energy, Lands, and Natural Resources, the Governor of the Bank of Ghana, the Chamber of Mines, the Precious Mineral Marketing Company (PMMC), and BOST were also part of the team that worked to make the move a reality.
