Ghana will search for gold for oil as IMF proposes tightermonetary policy 



Government will take steps to review gold purchases and the Gold-for-Oil program and related risks for the Bank of Ghana (BoG).

According to the 2023 report from the International Monetary Fund (IMF), there will be an amendment to the BoG law that will include stricter limits for currency, a system to monitor and enforce compliance, and a clear definition of the emergency situation of . The limit may be raised temporarily. Pendinglegislative changes, the BoG and the Ministry of Finance havesigned an agreement (the first project) to remove cash during the program.

The ongoing improved security assessment will provide additional support for the design of BoG policy changes, including gold and oil purchase programs and BoG-related risks. Debt restructuring will affect the BoG's balance sheet.The Government and BoG will assess the impact and develop a plan for recovery with technical assistance from the IMF. Thecentral bank has indicated that with regard to its involvement in the government's Gold-for-Oil program, it will carry out a thorough analysis of the risks the BoG faces under the program and report the findings to the Board of Directors. IMF administration.

Additionally, the Bank of Ghana has said it will phase out the Gold For Oil program as the economy stabilizes. Accordingto the report, the government says they have introduced G4O as a temporary measure to ensure adequate supply of fuel at reasonable prices.

It says that it will ensure that (i) contract volumes and pricing arrangements for export/import of goods at the central border are clear, (ii) the plan is implemented in accordance with the legal framework and the risks involved the amount considered in the Ministry of Finance (iii). ) The Auditor General conducts regular program audits, (iv) Gold purchases by the Bank of Ghana comply with international best practices and central bank safety standards, and (v) gold standards for oil are in line with the IMF Article VIII.

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