Debt-ridden Ghana plans to buy oil with gold instead of dollars, as foreign currency reserves dwindle to an alarming low

Ghana’s Vice-President Mahamudu Bawumia announced a “new policy regime” in which the African country will use gold, instead of the US dollar, to pay for its oil imports.
Ghana’s government is planning to use gold to pay for oil instead of shelling out US dollars.
The move is expected to reduce the “persistent depreciation” of the cedi, the Ghanaian currency.
As of end-September, Ghana’s forex reserves were just enough to cover 3 months worth of imports.

Ghana’s government is planning to go back to a barter system of trade.

In order to protect the country’s fast-dwindling foreign currency reserves, Ghana wants to pay for oil with gold instead of shelling out precious US dollars, Mahamudu Bawumia, the country’s vice president said Thursday

Ghana’s gross international reserves  have fallen by about one-third — from $9.7 billion at the end of 2021 to around $6.6 billion at the end of September 2022, according to official data.

The reserves will cover just 2.9 months of the…

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This article was written by [email protected] (Huileng Tan) and originally published on markets.businessinsider.com