Ghana Suspends Gold-for-Oil Program Amid Currency Stability Focus

Ghana's new central bank governor, Dr. Johnson Asiama, has suspended the Gold-for-Oil program due to policy and operational challenges, marking a significant shift in the country's economic strategy. The initiative aimed to reduce reliance on foreign exchange for fuel imports but faced financial losses, prompting its temporary halt. Dr. Asiama expressed optimism about stabilizing the cedi, which suffered significant volatility last year, and emphasized the importance of maintaining a prudent monetary policy and fiscal discipline under President John Mahama's administration. He reassured stakeholders that the Bank of Ghana is committed to exploring alternative strategies to manage fuel prices and ensure economic stability. This decision comes in the context of Ghana's ongoing economic challenges, including high inflation and the need for effective debt management following a $3 billion IMF bailout. Analysts will be closely monitoring the impact of these policy changes on inflation and exchange rates in the coming months.