John Philpot, an international human rights attorney from Montreal, Canada, has praised Ghana's recently developed and implemented "gold-for-oil" policy. Dr. Mahamudu Bawumia is the vice president.
Philpot, who has extensive knowledge of international politics affecting the continent and has previously lived in Africa, said Ghana's strategy is both a courageous and wise one because it will stop currency depreciation and stabilise prices. He continued by predicting that other other nations would soon adopt a similar policy.
"The U.S. dollar is experiencing significant inflation, which has reduced its value...
They (Ghana) are doing this to internally prevent the devaluation of their currency, and I believe this is going to be successful because gold has a higher universal value.
According to Philpot, countries in Africa consistently lose out because their currencies depreciate against the dollar, which has an impact on the regional economy. Price increases result from this, further depreciating the value of the local currency.
Because African nations' currencies are tied to the US dollar, it would seem that [the strategy] will prevent poverty and stabilise prices. Prices rise considerably more quickly, and the value of money for those earning those salaries is significantly lower. People I know who were living on Tanzanian salaries were having a really difficult time when I stayed there. Prices will be stabilised by this [gold for oil scheme], he claimed.
He claimed that Ghana's action represents a "return to multilateralism and obviously stronger relations with Russia, China, and other nations too... The idea of sovereignty served as the foundation for the United Nations. If the U.S. dollar dominates your economy, you lack sovereignty; thus, if they achieve universal trade or more democratic commerce, you gain sovereignty.
Recently, Ghana's vice president, Dr. Mahamudu Bawumia, declared that starting in 2023, the country would begin using its gold reserves rather than U.S. dollars to pay for refined crude products on the international market.
The Vice President stated that the action is intended to halt the cedi's devaluation and its decline in value at the 2022 Ghana Energy Awards, which were hosted on the evening of Sunday, November 27.
The need for foreign currency to pay for the import of oil goods has been a significant factor in the cedi's depreciation. The cost of life goes up as a result of the persistent cedi depreciation since petrol, utilities, transportation, food, and other costs go up, according to Bawumia.
The government has made the decision to pursue a strategy of utilising our gold to purchase oil products in order to solve this basic dilemma of the ongoing devaluation and its impact on fuel, utility prices, food, and other costs. One of the most significant shifts in Ghanaian policy since independence is the bartering of responsibly mined gold for oil. If we put it into practise as planned, it will drastically alter our balance of payments and greatly lessen the ongoing depreciation.
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John Philpot, an international human rights attorney from Montreal, Canada, has praised Ghana's recently developed and implemented "gold-for-oil" policy. Dr. Mahamudu Bawumia is the vice president.
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