A former Deputy Minister of Energy, Joseph Cudjoe, has emphasized the requirement so that Ghanaians might be able to consider government's Gold for Oil policy to be an imaginative methodology in managing the country's over-dependence on forex, which harms the economy.
Government's G4O policy has gotten many surveys with rivals portraying the strategy as a terrible one.
In any case, presently Minister for Public Enterprise Joseph Cudjoe rather depicts the G4O Policy as a shrewd move which will "try not to build Ghana's interest for dollars so the cost of dollars won't go up by heart".
The following are his justifications:
A MATTER ARISING THE GOLD FOR OIL WISDOM!
1. Oil importers in Ghana called BDCs (Bulk Distribution Companies) sell petroleum and diesel in Cedis through fuel stations of the OMCs (Oil Marketing Companies). Indeed. They sell in Cedis.
2. They need to import petroleum and diesel once more however they can't utilize the Cedis to import.
3. Reality is that they can import with gold or they can import with dollars since some oil exporters out there acknowledge gold. Sadly, they don't acknowledge Cedis.
4. To utilize dollars to import their oil, they need to purchase dollars with the Cedis they have. To utilize gold to import their oil, they need to purchase gold with the Cedis they have.
5. The issue with BDCs attempting to utilize dollars to import is that, their weighty interest for dollars generally expands the cost of the dollar. That is, they cause devaluation of the cedi against the dollar.
6. We as a whole know this issue but we have lived with it for a really long time.
7. Then comes the Savvy move by the financial aspects wizard - Bawumia. His inquiry is straightforward. How about you purchase gold with the Cedis you have and utilize the gold to purchase/import the oil? For what reason do you actually need to purchase dollars with your Cedis and utilize the dollars to import the oil?
8. Bawumia proceeds to say you individuals know that when you utilize the Cedis to purchase dollars, you increment interest for dollars and the cost of dollars go up and you gripe.
9. So essentially utilize your Cedis to purchase gold and utilize the gold to purchase oil. For this situation you try not to build Ghana's interest for dollars so the cost of dollars won't go up by heart.
Isn't this a Brilliant Move?
Hon Joseph Cudjoe
MP for EFFIA Constituency
Minister for Public Enterprise
#Men@Work!!!