The Bank of Ghana (BoG) says it intends to hand over the Gold-for-Oil programme to a commercial bank to operate.

According to the Governor of BoG, Dr Ernest Addison, this will allow the central bank to focus on its core functions of monetary policy and maintaining price stability.

Introduced two years ago, the program was expected to reduce fuel prices at the pumps. However, prices have been escalating in recent weeks.

But speaking to JoyNews, Dr Addison said the policy remains a strategic solution in boosting the country’s reserves.

He emphasised that the gold-for-oil program has been beneficial to the nation during crisis and thus warrants continuation.

“We only want to make sure that this is done by a commercial bank so that we can have time to focus on our operations as a central bank.

 "So this is the discussion that we are holding going forward but the ability to be able to exchange our natural resource directly for oil when oil prices get out of hand, we think that is a very innovative programme,” the BoG Governor said.

• Read also: All you need to know about the Gold for Oil programme

Dr Addison also asserted that the economy is recovering, with the country’s foreign exchange reserves showing improvement.

“For the economy as a whole, I can tell you that things are improving. Our foreign exchange reserve levels are improving. Recently, the World Bank, thanks to the Members of Parliament, approved a facility so we have had $300 million added to our reserves. 

“All of that, you know, strengthens our position and supports in executing these types of projects. So rest assured that so long as the economy continues on the path that we are on, we should be able to help government deliver,” he said.