Ghana’s newly appointed central bank governor has halted the country’s program of using gold to pay for oil, expressing confidence that the cedi will stabilize following last year’s volatility.“We aim to maintain a sound monetary policy stance,” said Bank of Ghana Governor Johnson Asiama, 56, in an interview on Friday.
He added that alongside the government’s commitment to fiscal discipline under President John Mahama’s administration, this approach “should support stability in the foreign exchange markets.”With interest rates at 27% and inflation easing to 23.5% in January, Asiama emphasized that improved coordination between monetary and fiscal policies should help curb inflationary pressures.
This comes as Ghana moves past the economic difficulties caused by its 2022 debt default. As Africa’s largest gold producer, the nation was forced to seek a $3 billion bailout from the International Monetary Fund and restructure its debt after failing to meet its financial obligations.After losing 19% of its value last year, the cedi is expected to stabilize, according to the governor.
The previous government introduced the gold-for-oil program to counter currency swings, with the central bank buying gold in local currency for barter or oil purchases. However, Governor Asiama admitted the program led to losses, prompting its suspension.In 2024, Ghana’s oil import bill reached $4.5 billion, while the Bank of Ghana acquired 65.4 tons of gold, with 30.5 tons allocated to foreign reserves.
The central bank may soon transfer its gold purchases to a newly established Gold Board.Sworn in on Feb. 25, Governor Johnson Asiama has pledged to curb losses after the bank’s record 60.9 billion cedi ($3.9 billion) deficit in 2022, driven by loan write-downs for an IMF bailout. He assured that losses will be avoided this year by implementing cost-control measures.
