Last year, the Government of Ghana announced a new government policy dubbed Gold for Oil (G4O). The policy, as explained by the government, is to allow the government to pay for imported oil products with gold, in a direct barter with gold purchased by the Central Bank. The move, announced by the Vice President in the midst of the depreciation of the cedi against the US dollar and the rising cost of fuel prices, was explained as an intervention to help stabilise prices of fuel products, as well as reduce pressure on Ghana’s foreign exchange, as the direct gold barter would be the mode of paying for imported oil instead of depleting the foreign exchange reserve. The Gold for Oil programme has since been implemented. As Energy Expert Group with good understating of derivatives in the oil and gas market, discuss the Policy in the context of Derivatives. What is/are the derivative(s) being used?
Last year, the Government of Ghana announced a new government policy dubbed Gold for Oil (G4O).
The policy, as explained by the government, is to allow the government to pay for imported oil products with gold, in a direct barter with gold purchased by the Central Bank.
The move, announced by the Vice President in the midst of the
The Gold for Oil programme has since been implemented.
As Energy Expert Group with good understating of derivatives in the oil and gas market, discuss the Policy in the context of Derivatives. What is/are the derivative(s) being used?
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