26/08/2024
THE GOLD FOR OIL PROGRAMME
Before the "gold for oil" programme was initiated by Bawumia (since he's solely taking credit for it):
1. Ghana mines gold.
2. Ghana exports (sells this gold) at the international market.
3. Ghana earns foreign exchange (fx) from the sale of its gold.
4. Ghana uses the fx (earned from the sale of gold) to purchase oil.
5. Ghana gets oil, but has no fx from the sale of gold.
After the introduction of gold for oil:
1. Ghana mines gold.
2. Ghana keeps the gold mined with BoG.
3. Ghana does not export the gold kept with BoG, therefore Ghana does not earn any fx from gold.
4. Ghana exchanges the gold reserved with BoG for oil.
5. Ghana gets oil, but has no fx from the sale of gold.
So, what's the big deal about this Gold for Oil programme? What's the net benefit to Ghana? I need better understanding to appreciate the ingenuity of Bawumia in this whole "gold for oil programme", because to me, the value (net benefit, if there's to Ghana) is the same.