Acting Chief Executive of Dalex Finance, Joe Jackson, has lauded government’s Gold for Oil policy, saying it contributes to some extent, the stabilisation of the cedi.
The Gold for Oil (G4O) programme in Ghana is strategically devised to eliminate the necessity for foreign exchange, specifically dollars, in the pricing mechanism of petroleum products.
According to the finance analyst, the cedi depreciation would have been worse if not for the introduction of the policy.
Citing the month of May alone for instance, Mr. Jackson noted that oil worth the value of GHC400million was traded for gold, an amount he believes would have worsened the cedi’s plight, if government had paid for it in dollars.
His comments come on the back of the Finance Minister’s claim that the fall of the currency is as a result of speculation on the market, blaming Isaac Adongo, a Ranking Member on the Finance Committee of Parliament, for contributing to same.
At a press conference on Monday, July 01, 2024, the Minister who also serves as the Karaga Member of Parliament, described Mr. Adongo’s actions as inappropriate.
He claimed that Mr Adongo’s comments were intentionally made to incite negative sentiments against the recent appreciation of the local currency.
But speaking on Ghana Tonight on TV3 Monday, July 01, 2024, Joe Jackson noted that speculation alone cannot be cited for the cedi’s fall, explaining how it would be dangerous if the entire problem is attributed to that.
He says the good things that needs to be done to retain the value of the cedi, such as the Gold for Oil programme, may not be continued, if everything is attributed to speculation.
“If the root of the depreciation of the cedi is not in speculation, then the danger is that the good things we may be doing to help the cedi retain its value may not be continued or the good things we should be doing may not be done. Because there are some good things that we’ve done to keep the cedi’s value,” he indicated.
He continued that “because there are some good things that we’ve done to keep the cedi’s value. Even amidst all these holding on, the Gold for Oil is a good policy. I keep saying that the gold for oil is a good policy and I dread what the cedi would have been if the gold for oil policy was not in place.
“In May alone, over GHC400million went into the gold for oil production for the certified bulk oil distributors. They didn’t go to the market to pay dollars. They had to pick gold,” he lauded.
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