ACCRA, Nov 24 (Reuters) – The Ghanaian government is working on a new political regime where gold will be used to buy petroleum products rather than U.S. dollar reserves, Vice President Mahamudu Bawumia said on Facebook on Thursday.
The move is aimed at tackling dwindling foreign exchange reserves coupled with oil importers’ demand for foreign currency, which weakens the local cedi and raises the cost of living.
If implemented as planned, the new policy “will fundamentally change our balance of payments and significantly reduce the persistent depreciation of our currency,” Bawumia said.
Reporting by Cooper Inveen and Christian Akorlie Writing by Sofia Christensen Reporting by Estelle Shirbon and James Macharia Chege
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