Country in Africa will begin to buy oil for gold

Ghana Government (a country in West Africa) is working on a new system of procurement of oil products, in which payment will be made not in US dollars, but gold from the country’s reserves. This was stated by the Vice President of the country M. Bavumia, reports Reuters.

According to the report, this step is designed to solve the problem of reducing foreign currency reserves in combination with demand for dollars from oil importers, which increases the cost of life in Ghana.

According to the government, at the end of 2021, the country’s international reserves amounted to about 9.7 billion US dollars. In the case of the project in the first quarter of 2023, the new purchase system radically change the payment balance of Ghana and significantly reduce the constant depreciation of the national vest – the same.

The use of gold will prevent the direct effect of the exchange rate on fuel prices or utilities, since local sellers no longer need foreign currency for oil products.

According to M. Bavumia, the exchange of gold for oil products is a serious structural change. To ensure a new calculation system, all major mining companies from January 1, 2023 were instructed to sell 20% of all gold reserves at their affinating plants to the Ghana Bank.