{"id":14863,"date":"2022-11-27T07:26:05","date_gmt":"2022-11-27T07:26:05","guid":{"rendered":"https:\/\/crowdfundjunction.com\/blog\/ghana-takes-steps-to-operationalize-gold-for-oil-scheme-move-expected-to-help-halt-cedis-depreciation-featured-bitcoin-news\/"},"modified":"2022-11-27T07:26:05","modified_gmt":"2022-11-27T07:26:05","slug":"ghana-takes-steps-to-operationalize-gold-for-oil-scheme-move-expected-to-help-halt-cedis-depreciation-featured-bitcoin-news","status":"publish","type":"post","link":"https:\/\/crowdfundjunction.com\/blog\/ghana-takes-steps-to-operationalize-gold-for-oil-scheme-move-expected-to-help-halt-cedis-depreciation-featured-bitcoin-news\/","title":{"rendered":"Ghana Takes Steps to Operationalize Gold-for-Oil Scheme \u2014 Move Expected to Help Halt Cedi’s Depreciation \u2013 Featured Bitcoin News"},"content":{"rendered":"

(Originally posted on : Bitcoin News )<\/b>
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According to directives issued by Samuel A. Jinapor, the Ghanaian minister for lands and natural resources, large-scale gold mining companies will be required to \u201csell 20% of all refined gold at their refineries to the Bank of Ghana.\u201d A gold-for-oil scheme is part of the Ghanaian government\u2019s plan to stop the further dwindling of the country\u2019s foreign exchange reserves.<\/strong><\/p>\n

Bank of Ghana to Use Cedi to Pay for Gold<\/h2>\n

Following the revelation that Ghana plans to buy oil products using gold, Samuel A. Jinapor, the country\u2019s minister for lands and natural resources, announced on Nov. 25 that starting in 2023, large-scale mining companies \u201cshall sell twenty per cent (20%) of all refined gold at their refineries to the Bank of Ghana.\u201d Payments for the gold will be made using the local currency \u2014 the cedi \u2014 and will be \u201cat spot price with no discounts.\u201d<\/p>\n

According to a Facebook post<\/a> shared by Ghanaian vice president Mahamudu Bawumia, the Bank of Ghana (BOG) and the Precious Minerals Marketing Company (PMMC), will work with the mining companies to ensure their compliance with the directive. Concerning Ghana\u2019s so-called community mining schemes (CMS), the government said these will be required to sell their \u201cgold outputs to government through PMMC.\u201d<\/p>\n

To ensure compliance, Jinapor stipulated that \u201cmining licenses for CMS shall include a clause mandating licensees to sell their gold output to government.\u201d According to the directives issued by Jinapor, all licensed small-scale gold miners will be subjected to conditions that are similar to those imposed on community mining schemes.<\/p>\n

Ghana\u2019s Dwindling Foreign Exchange Reserves<\/h2>\n

Meanwhile, in an earlier post that revealed Ghana\u2019s gold-for-oil plan, Vice President Bawumia insisted such a decision would help preserve the country\u2019s depleting foreign exchange reserves. He added:<\/p>\n

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The barter of sustainably mined gold for oil is one of the most important economic policy changes in Ghana since independence. If we implement 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.<\/p>\n<\/blockquote>\n

By reducing or eliminating the use of U.S. dollars when importing oil products, Ghana will effectively tackle one of the key factors behind the cedi\u2019s rapid depreciation, Bawumia argued. As reported<\/a> by Bitcoin.com News, the Ghanaian currency\u2019s rapid decline since the start of 2022 has seen it being named the world\u2019s worst-performing currency.<\/p>\n

While Jinapor\u2019s directives to gold mining companies are being framed as a channel that helps \u201clocal gold refineries obtain gold supplies from PMMC to support their operations,\u201d some of Bawumia\u2019s followers on the social media platform have criticized the proposed gold-for-oil policy.<\/p>\n

Reacting to the Ghanaian vice president\u2019s post, Facebook user Naji Alhassan said: \u201cThese are not good measures. These are window-dressing to please the bourgeois class. The best way to go is to own at least 50% of our gold and also a gold refinery to refine our gold. Very soon, the bourgeois class will deplete all the gold that the Bank of Ghana will be buying. We want pragmatic measures.\u201d<\/p>\n

However, some of Bawumia\u2019s followers, like Mohammed Hashiru, applauded the move which they claimed would stop \u201cimperialists from using their worthless papers to control, manipulate and destroy our economies.\u201d<\/p>\n

Register your email here to get a weekly update on African news sent to your inbox:<\/em><\/p>\n

What are your thoughts on this story? Let us know what you think in the comments section below. <\/strong><\/em><\/p>\n

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\nTerence Zimwara <\/h6>\n

\nTerence Zimwara is a Zimbabwe award-winning journalist, author and writer. He has written extensively about the economic troubles of some African countries as well as how digital currencies can provide Africans with an escape route.

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Image Credits<\/b>: Shutterstock, Pixabay, Wiki Commons<\/em><\/p>\n

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Disclaimer<\/strong>: This article is for informational purposes only. It is not a direct offer or solicitation of an offer to buy or sell, or a recommendation or endorsement of any products, services, or companies. Bitcoin.com<\/a> does not provide investment, tax, legal, or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article.<\/p>\n<\/div>\n

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