The Gold-for-Oil program recorded massive losses and has been cancelled by the NDC government
The Minister for Finance, Dr Cassiel Ato Forson, has clarified that the Gold-for-Oil programme introduced by the NPP government was not a barter arrangement.
Rather, he explained, the government paid cash for the oil it purchased.
According to him, despite widespread claims that the initiative involved a direct exchange of gold for oil, the transactions were, in fact, settled with cash.
Speaking in an interview with JoyNews after presenting the 2025 Mid-Year Budget Review on July 24, 2025, Dr Forson stated that the Bank of Ghana (BoG) bought gold, held it in reserve, and used cash, rather than gold, to pay for imported oil.
He drew a distinction between the Gold-for-Oil programme and the Gold for Reserves programme, noting that the two are fundamentally different.
“I hear people comparing these two policies, but they are not the same. One involves using local currency to buy gold and storing it in our reserves. In that case, we buy the gold, sell it, and use the forex to accumulate reserves,” he said.
Dr Forson added that he had confirmed with officials at the Bank of Ghana that there was no barter involved in the oil purchases.
“The BoG kept the gold and then ultimately used cash to buy the oil, oil that would otherwise have been purchased with foreign exchange. I’m not aware of any direct barter arrangement. The Bank of Ghana largely paid suppliers of crude oil and petroleum products in cash. They never paid them with gold, never,” he emphasised.
He further explained that a supplier in Dubai was providing oil to the Chamber of Bulk Oil Distributors, and the Bank of Ghana was responsible for making the payments.
“The bulk oil distributors would give cedis to the BoG, and the BoG would pay the supplier in dollars. That’s it, pure trade, nothing more,” he said.
However, Dr Forson acknowledged that the Bank of Ghana increased its gold reserves during this period.
“Yes, they were holding on to some of the gold, and it’s evident that their gold reserves increased. That is a fact,” he added.
SSD/MA
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