Ghana To Review Gold-For-Oil Policy As IMF Proffers Stricter Monetary Financing Limits
Government will take steps to review gold purchases as well as the Gold-for-Oil program and its associated risk for the Bank of Ghana (BoG).
According to the International Monetary Fund (IMF) 2023 report, there will be an amendment to the BoG Act that will feature a stricter limit for monetary financing, mechanisms to monitor and enforce compliance, and a clear definition of emergency situations under which the limit can be temporarily lifted.
Pending legislative changes, the BoG and the Finance Ministry signed an MoU (prior action) to eliminate monetary financing during the programme.
An ongoing updated Safeguards Assessment will provide additional support for designing changes to the BoG Act, most importantly government’s gold purchase and gold-for-oil programs and associated risks for the BoG.