Ghana in talks with Dubai oil refiner to barter gold for oil

Bloomberg/Ekow Dontoh and Moses Mozart Dzawu/11-28-2022

photograph of various gold bars“The government reached a ‘tentative’ agreement with the Dubai-based oil firm, said Kabiru Mahama, an economic adviser to Vice President Mahamudu Bawumia. Ghana, Africa’s second-largest gold producer, last week ordered large mining companies to sell 20% of the metal they refine to the central bank from Jan. 1 as it builds up reserves of bullion to be used to import fuel and reduce demand for dollars after its currency plunged 57% this year.”

USAGOLD note: It didn’t take long for Ghana to find someone willing to take it up on its gold for oil offer. Maham goes on to note that all Ghana’s “oil product needs would be swapped for gold.” Many will be tracking Ghana’s attempt to stabilize its currency by circumventing the need for dollars to purchase oil. Ghana produces about 130 tonnes of gold per year.

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