The Bank of Ghana (BoG) has reiterated its backing for the government’s Gold4Oil policy, emphasising its significance for the nation despite its constraints.

Speaking before the Public Accounts Committee (PAC) on Monday, April 8, BoG Governor, Dr Ernest Addison, underscored the pivotal role of the policy during the economic crisis.

Dr Addison outlined the positive outcomes of the Gold4Oil policy since its inception in 2022, noting a decline in oil prices compared to those in 2022.

He advocated for the policy's continuity in case of a resurgence in oil prices at the pumps, opposing any potential discontinuation.

"This is an intervention which was very critical in the heat of the crisis; yes, the foreign exchange market is functioning better than it was in 2022.

"Oil prices have come down much better than they were in 2022. The situation is much better now than it was in 2022 when the Gold4Oil policy was introduced.

"However, we think that it’s still an important programme for the government to have that option and to be able to empower commercial banks to undertake their activities. Should market sentiments change, which do every day, we don’t know what will happen tomorrow.

"And we will wake up and if we find ourselves in a situation where the prices are driving the pumps to where they were again. The government has an option to fall on. It’s a very innovative instrument."

The BoG Governor also predicted a substantial surge in Ghana’s gold reserves.

“There is going to be a big jump in gold holdings for Ghana,” he assured.