Fresh remarks by the First Deputy Governor of the Bank of Ghana, Dr. Zakari Mumuni, have cast the central bank’s loss-making Gold for Oil (G4O) programme in a positive light, describing it as a lifeline that helped stabilise the economy. This stands in contrast to the bank’s earlier explanation for ending the initiative in March 2025 after recording losses of some GH¢2.14 billion.
Addressing the C’NVERGE 2025 conference in London on the topic on the topic, ‘Leveraging Commodities: The Central Bank’s View,’ Dr Mumuni hailed the G4O initiative as a lifeline that helped Ghana secure petroleum imports at competitive prices, bypass volatile currency markets, and ease the inflationary impact of fuel price hikes.
Dr Mumuni stated, “in several countries, leveraging commodities has become integral to policy frameworks, particularly during periods of supply chain disruptions, inflation, and market volatility. I am sure that conversations at this Conference will offer a unique opportunity to appreciate the transformative power of natural resources, not merely as tradeable goods, but as strategic assets capable of shaping macroeconomic outcomes, influencing investor sentiment, and driving long-term growth.”
He credited the programme with moderating transport cost pressures, stabilising the cedi, and supporting a credit rating upgrade from restrictive default to B with a stable outlook. “This was a market-based solution that delivered tangible results during a turbulent period,” he said.
Between its launch in late 2022 and June 2025, G4O facilitated the exchange of 27.63 tonnes of gold for 1.95 million metric tonnes of petroleum products. The Bank of Ghana insists this strategy shielded the economy from deeper instability.
However, the upbeat assessment contrasts sharply with the central bank’s earlier justification for halting the programme: the GH¢2.14 billion in recorded losses. Analysts attribute the shortfall to swings in global gold prices, oil market volatility, and procurement inefficiencies, while also pointing to the opportunity cost of using gold that could have bolstered reserves.
Critics warn that focusing on short-term price relief may have left Ghana more exposed to future external shocks, especially if gold reserves are depleted faster than they can be replenished.
The Bank of Ghana maintains that the macroeconomic stability achieved, particularly the containment of inflation, justifies the expense. But for many observers, the question remains whether the programme’s benefits truly outweighed its fiscal cost.
The International Monetary Fund is also weighing in. According to the Fund, an ongoing updated Safeguards Assessment will provide additional support for designing changes to the Bank of Ghana Act. This review will assess the authorities’ gold purchase and gold-for-oil programmes and the associated risks for the Bank of Ghana.
