The strengthening of the US dollar, which affects the value of the local currency and the cost of living, prompts Ghana to use gold to buy oil products.
The move was shared by Vice President Mahamudu Bawumia on his Facebook page on Thursday, who said the Ghanaian government was working on a new policy to implement it.
It is well known that the strength of the US dollar has affected countries that use the dollar as the main currency of trade.
Ghana is struggling with dwindling foreign exchange reserves and demand for dollars by oil importers that weakens the cedi and increases the cost of living.
If the policy is implemented as planned for the first quarter of 2023, it will fundamentally change Ghana's balance of payments and significantly reduce the continued depreciation of the currency.
According to Mahamudu Bawumia, the use of gold will prevent the exchange rate from directly affecting the price of fuel or utilities since domestic sellers no longer need foreign exchange to import oil products.
Ghana is currently at high risk of a debt problem with the cedi's devaluation affecting its ability to manage its public debt
