Ghana Reached Barter Agreement to Swap Gold for Fuel

SEATTLE (Scrap Monster): According to media reports, the African nation of Ghana is partnering with Dubai-based, state-owned oil refining major Emirates National Oil Co. (ENOC) towards establishing a barter arrangement that will help it to buy fuel with gold. Accordingly the Ghanaian government has reached a tentative agreement with the oil company.

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According to Kabiru Mahama, an economic adviser to the Vice President, all mining companies in Ghana have been ordered to sell one-fifth of the metal they refine to the country’s central bank starting next year. This is aimed at building up bullion reserves, which in turn will be paid in exchange as price for imported fuel.

Ghana stated that it is open to enter into a barter agreement with interested international oil trading companies. All oil product needs of the country would be swapped for gold starting October 2023, it noted. It expects the proposed barter agreement to help it stem the fall in cedi-the nation’s currency, which has been one among the world’s worst performing currencies.

Steve Opata, head of financial markets at the Bank of Ghana commented that ENOC has expressed its interest for supplying refined oil for gold and that it would be a government-to-government program.