The Governor of the Bank of Ghana (BoG), Dr Johnson Asiama, has announced the suspension of the country’s Gold-for-Oil programme due to unspecified policy and operational challenges.

The decision marks a significant shift in Ghana’s economic strategy, as the initiative was originally designed to reduce reliance on foreign exchange for fuel imports and stabilise domestic fuel prices.

Speaking in an interview with Bloomberg, Dr Asiama disclosed that the programme had incurred financial losses, necessitating its temporary suspension.

“We have had to incur some losses on that, so we have put some suspension on the trade,” he stated. While he did not elaborate on the specific challenges faced, the suspension reflects broader economic adjustments under the new administration.

Despite the halt, Dr Asiama expressed optimism about Ghana’s economic prospects, particularly regarding the stability of the cedi following last year’s volatility.

He assured that the central bank would uphold a prudent monetary policy to support fiscal discipline.

“We intend to maintain an appropriate monetary policy stance. Together with commitments to fiscal discipline under the administration of President John Mahama, this should help us maintain stability in the foreign exchange markets,” he remarked.

The suspension of the Gold-for-Oil programme signals a reassessment of economic policies, with the BoG exploring alternative measures to sustain fuel price stability.

Dr Asiama reaffirmed the central bank’s commitment to ensuring effective economic management while addressing the challenges that led to the programme’s suspension.