Seasoned Journalist, Kwesi Pratt Jnr. has lauded the move by the Government of Ghana to use the country's gold reserves to pay for oil.
The government is working on a new policy to buy oil products with gold, Vice President Mahamudu Bawumia announced the move on Thursday.
This policy is meant to tackle the dwindling foreign currency reserves coupled with the demand for dollars by oil importers which is weakening the cedi and increasing living costs.
When implemented as planned for the first quarter of 2023, the new policy “will fundamentally change our balance of payments and significantly reduce the persistent depreciation of our currency”, Bawumia said.
“The barter of gold for oil represents a major structural change,” he added.
The government estimates to reap revenues to the sum of $3 billion from this trade.
Dr. Bawumia also dispelled rumors that this move is against the use of the US dollar in international transactions.
“Unfortunately some people have misinterpreted this as Ghana being against the use of the US dollar in international transactions. Far from it. We want to accumulate more US dollar reserves in the future”, he noted while speaking at the 2022 AGI Awards in Accra.
He further said; ”If we implement the gold for oil policy as it as envisioned, it will fundamentally change our balance of payments and significantly reduce the persistent depreciation of our currency with its associated increases in fuel, electricity, water, transport and food prices."
Kwesi Pratt applauded the government's efforts to strengthen the local currency and improve lives through the use of the country's gold to purchase oil which will give the nation 3 billion dollars worth of profits.
"For me, this policy will help us a lot because, according to the Vice President, when we use the gold to buy oil, we will get at least 3 billion. This is even more than the money we are seeking from IMF," he told host Kwami Sefa Kayi on Peace FM's morning show "Kokrokoo".
He, however, disagreed with the Vice President on his clarification that this policy is intended against the dollar.
Mr. Pratt asked "why should we apologize for doing the right thing?" as, to him, the government owes no one an apology if it is adopting a policy that will give the cedi strength over the foreign currencies.
Source: Ameyaw Adu Gyamfi/Peacefmonline.com/Ghana
Disclaimer: Opinions expressed here are those of the writers and do not reflect those of Peacefmonline.com. Peacefmonline.com accepts no responsibility legal or otherwise for their accuracy of content. Please report any inappropriate content to us, and we will evaluate it as a matter of priority. |
The depreciation of the cedi against the dollar has been with us for too long, like a chronic disease. I believe the policy is a specific measure tailored to reduce the pressure on the cedi while we transform and reinforce the structures of the economy to bear the overall load. This is an interim trade agreement arranged specifically for mutual benefit between agreed trade partners, with no side-taking in terms of international dollarization politics. Hence, this is to be seen as a Ghana problem with a Ghana solution. In simple terms, please don't beat about the ***barred word***. Once upon a time, there was an American president who ended every sentence with "America first," and that was indeed legitimate. Thus, Ghana's problems need Ghanaian solutions. I wouldn't want to say Ghana first, and I don't need to say it diplomatically.
I would also encourage the oil-producing countries to be forward-looking and proactive, realizing that oil will lose value with the introduction of electric cars, eco-friendly energy production, and improved electric battery storage levels. It's therefore prudent to look forward and reserve some of the oil in gold. I believe the policy is mutually beneficial, as the barter arrangement sought to meet the needs of two traders by exchanging their products. Mind you, the almighty America has much gold in reserves.
This plan will not work. Immediately the international market realises Ghana cannot mobilise dollars anymore and the use of gold is the last resort and just one of the many alternatives to paying for the oil, the prices they will set for an ounce of gold from Ghana government will be lower than average international prices. Ghana has to accept because it has no dollars to import the petroleum products. Good luck to this dimwit Bawumia and his paid cheerleaders.
@Skyblade I salute you 100%. Infact this has been one of the biggest problems of African leaders. We make our intentions so Public to this white people and they start to strategize against you. We can do things without being so vocal. White people don't operate that way. If they want to do things against you they will come like stealth and action their plan. But we become so loud we let out our plan. When this administration started becoming so loud on the international stage with their plans i Knew we are in for trouble. The likes of Nkrumah, captain Sankara, and Gadaffi did not succeed because of this loud Rhetoric's. When our president went to Switzerland to announce to them that we are no longer going to export raw cocoa beans to them I question how ***barred word*** we are in dealing with the west. These are very crafty people, why do you go open your plans to them like that. Black people should not underestimate how vicious and callous this western people can be. WE SHOULD LEARN TO DO OUR THINGS ON THE QUIET AND STOP BEING TOO LOUD ALL THE TIME.
Kwesi Pratt should understand this very well. When you make your intention very clear that you are at war with the WEST, you will not get anywhere. What happened to the Leaders he worshipped so much. Nkrumah, Gaddafi, etc were all taken care of. The mistake of this government is that they made it too clear they didn't want to depend on the WEST. Do not underestimate the powers of the WEST. Even mightier nations do not have it easy when they go against them. So what ever you do, do it carefully so that it does not seem we are fighting against them.