Thursday, July 3, 2025

More De-Dollarization? Ghana Unveils Plan to Purchase Crude With Gold Rather Than US Dollars

The list of countries shunning the US dollar is increasing. Ghana, a developing country located in West Africa, is carving out a new policy that will switch its mode of payment for oil products from US dollar reserves to gold.

According to a Facebook post published by Ghana vice president Mahamudu Bawumia on Thursday, the government plans to introduce a bill that will use gold to purchase refined oil imports, amid a decline in foreign currency reserves and a simultaneous rising demand for dollars by importers, both of which are weakening the country’s currency and raising the cost of living.

“The barter of gold for oil represents a major structural change,” said Bawumia. The new policy “will fundamentally change our balance of payments and significantly reduce the persistent depreciation of our currency.”

G

By reverting to gold as the default payment method for oil, fuel and utility prices would be spared from the volatile impact of exchange rates, as domestic sellers wouldn’t need to rely on foreign exchange to purchase crude products. As of September 2022, Ghana had about $6.6 billion in gross international reserves, which would only pay for about three months-worth of imports. The figure is a substantial decline from the $9.7 billion in reserves reported at the end of 2021.

Still, such a move is somewhat unheard of. Although nations occasionally exchange oil for other commodities, such transactions are generally comprised of an oil-exporting country receiving non-oil goods rather than vice versa. Ghana does produce some crude oil, but largely relies on refined oil imports after its sole refinery closed following a 2017 explosion. The country’s government is currently working on a relief package with the IMF, as the African nation struggles to overcome one of the worst economic crisis in decades.

Information for this briefing was found via Facebook and Reuters. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.

Video Articles

Gold Drilling Scaled to 60,000 Meters: How Big Can This Get? | Roger Rosmus – Goliath Resources

Baselode Energy To Acquire Forum Energy: The Merger Of Equals Deal

TriStar Gold: The Revised Castelo de Sonhos Prefeasibility Study

Recommended

ESGold To Expand Mine Building At Montauban In Advance Of Gold & Silver Production

Goliath Resources Expands 2025 Drill Program To 60,000 Metres

Related News

Tesla Reveals $1.5 Billion In Bitcoin Holdings Following Revised Investment Policy That Includes Gold

Tesla Inc (NASDAQ: TSLA) this morning indicated in a filing that it has revised its...

Monday, February 8, 2021, 08:38:02 AM

MAS Gold Enters Definitive Agreement To Be Acquired By Southern Empire

Southern Empire Resources (TSXV: SMP) has entered into a definitive agreement to acquire that of...

Wednesday, August 19, 2020, 08:35:44 AM

Xander Resources Expands Claims At Blue Ribbon Property

Xander Resources (TSXV: XND) this morning announced that it has expanded its claims for the...

Wednesday, July 8, 2020, 10:59:24 AM

Victoria Gold Announces Share Buy-Back Program

Victoria Gold Corp. (TSX: VGCX) this morning announced its plans to start a normal course...

Thursday, May 27, 2021, 09:44:00 AM

Liberty Gold Reports 1.7 Million Indicated Ounces Of Gold At Black Pine Oxide Gold Deposit

Liberty Gold Corp (TSX: LGD) has finally released a resource estimate for its Black Pine...

Tuesday, July 13, 2021, 07:56:22 AM