The Ghanaian government has announced that it will begin utilising gold, instead of dollars, to purchase oil products in order to address the issue of the country’s declining foreign exchange reserves.
Ghana’s vice president, Mahamudu Bawumia, made this announcement in a Facebook post on Thursday. He added that the decision was made to meet the rising dollar demand from oil importers, which has significantly devalued the local currency and raised living costs.
The vice president claimed that using gold would prevent the exchange rate from immediately affecting the price of fuel or utilities because domestic vendors would no longer need foreign money to import oil items.
“The demand for foreign exchange by oil importers in the face of dwindling foreign exchange reserves results in the depreciation of the cedi and increases in the cost of living with higher prices for fuel, transportation, utilities, etc.
“To address this challenge, the…
