Prof. Hanke to Dr. Bawumia: “Your gold-for-oil proposal is a fraud.”

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Vice President Dr. Mahamudu Bawumia’s declaration of a new policy of purchasing oil goods with gold rather than U.S. dollars has been criticised as “bogus” by Steve H. Hanke, a professor of Applied Economics at Johns Hopkins University.

Prof. Hanke to Dr. Bawumia: "Your gold-for-oil proposal is a fraud."
Prof. Hanke to Dr. Bawumia: “Your gold-for-oil proposal is a fraud.”

With this latest gold-for-oil proposal, he claimed, Ghana’s vice president is grabbing at thin air.

The government’s new plan is intended to address the declining foreign exchange reserves and the need for dollars from oil importers, both of which are weakening the local cedi and driving up living expenses.

The new policy “would radically affect our balance of payments and greatly lessen the ongoing depreciation of our currency,” according to Bawumia in a post on his Facebook timeline, assuming it is implemented as scheduled for the first quarter of 2023.

 

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