Ghana has taken delivery of the first consignment of 40,000 metric tonnes of oil from the United Arab Emirates as part of government's Gold for Oil policy.
The consignment which arrived in the country on Sunday January 15, according to Ghanaian Times sources, has been discharged into the receptacles of the Bulk Oil Storage and Transportation Company (BOST) at the Tema Port.
Valued at US$40 million, the petroleum product was delivered by SCF YENISEI and is expected to be sold by BOST to bulk distributing companies (BDCs).
The barter arrangement was first announced by the Vice President, Dr Alhaji Mahamudu Bawumia, in November last year as part of measures to stabilise the Ghanaian cedi and keep prices of petroleum products low.
"If we implement it as we have envisioned, it will fundamentally change our balance of payments and significantly reduce the persistent depreciation of our currency," Dr Bawumia said when he disclosed the deal at the Association of Ghana Industries' awards night in Accra on November 26.
"The barter of gold for oil represents a major structural change," the Vice President added.
Some market watchers, however, have cast doubts over the viability of the policy questioning its sustainability.
But the Bank of Ghana, has allayed those fears.
Director of Financial Market at the Bank, Stephen Opata, said the country has sufficient gold in its reserves to sustain the policy.
Sign up for free AllAfrica Newsletters
Get the latest in African news delivered straight to your inbox
"As for the quantities, based on the production numbers we saw last year, gold has picked up. We believe that we can buy enough gold to sustain the program.
"I must say that the numbers we are currently looking at is about 160,000 ounces per month and that will represent about 50 to 60 per cent of the consumption of the country.
"According to what the PMMC (precious mineral marketing company) indicates, I think we have volumes to support the program," Mr Opata said.
He gave this assurance when officials of the central bank appeared before the Public Accounts Committee of Parliament in Accra on Monday, to respond to findings of the Auditor-General in his report on Foreign Exchange Receipts and Payment by the Bank of Ghana for the year ending December 31, 2020.
According to him, there is no cause for alarm as the Central Bank is well positioned to meet the 160,000 ounces of gold per month demand for under the deal to sustain same.
