Features
Why gold for fuel

Gold for oil policy is to tackle dwindling foreign currency reserves
The economic challenges facing the country today calls for the taking of pragmatic steps to help reduce the burden on Ghanaians and make things a bit easy for the people in this country.
In doing so, it will help deal with the purchase of an essential commodity like crude oil to enable economic life to continue smoothly for the country irrespective of the serious challenges facing the entire world including our dear country.
The decision to use oil to purchase fuel for the country is a major step that shows that the leadership of this country is thinking outside the box to make life bearable even in a situation where things are extremely difficult.
The normal practice is that crude oil is imported into the country with the use of the US dollar and this is a practice that is accepted by many countries in the world.
This practice has established the US currency as an essential global commodity used to transact business among countries in the world.
For this reason, countries that are import oriented tend to put more demand for the US dollar, thereby causing a reduction in the value of the local currency which in the case of Ghana is the Cedi.
The Cedi will continue to depreciate in relation to other foreign currencies as long as undue pressure is put on the Dollar for the import of products into the country. If a reverse for this situation can be found, that is more products can be exported rather than imported, it will help the Cedi to appreciate its value against the dollar and other foreign currencies.
In the light of this, it becomes easy to understand why the leaders of this country are taking such a practical positive step to reverse the situation in this country and use one of our precious minerals, that is gold, as an exchange commodity to import crude oil.
This is why Ghana’s government, as has been pointed out already, is working on a new policy to buy oil products with gold rather than U.S. dollar reserves. This point was made by Vice-President Mahamudu Bawumia recently.
The move, he pointed out, is meant to tackle dwindling foreign currency reserves coupled with demand for dollars by oil importers, which is weakening the local cedi and increasing living costs.
Ghana’s Gross International Reserves stood at around $6.6 billion at the end of September 2022, equating to less than three months of imports cover. That is down from around $9.7 billion at the end of last year, according to the government.
If implemented as planned for the first quarter of 2023, the new policy will fundamentally change our balance of payments and significantly reduce the persistent depreciation of our currency.
If Ghana for instance uses about $400 million to import crude oil every month, we can easily imagine the tremendous pressure this puts on the dollar. Thus, together with other demands for imports, the pressure on the dollar keeps escalating and this explains why the Cedi continues to depreciate, making imported products very expensive in this country.
To correct this economic imbalance, there is the need to reduce imports of foreign goods. Government has already made it clear in the 2023 budget statement that imports are to be cut down by 40 per cent.
Using gold would prevent the exchange rate from directly impacting fuel or utility prices as domestic sellers would no longer need foreign exchange to import oil products.
The barter of gold for oil represents a major structural change. Government is therefore right in taking this action so that the economic situation in the country can be made better for all Ghanaians.
The proposed policy is uncommon. While countries sometimes trade oil for other goods or commodities, such deals typically involve an oil-producing nation receiving non-oil goods rather than the opposite.
Ghana produces crude oil but it has relied on imports for refined oil products since its only refinery shut down after an explosion in 2017. With time, the oil refinery in Tema, TOR, can be refurnished to make it workable so that arrangements can be made to refine our own oil in this country.
This means that we will have to negotiate a deal with investors in our oil exploration in the country so that the crude oil will not have to be sent out to be refined before being brought back into the country for consumption.
The policy relating to the use of gold for fuel is an innovative way of dealing with the enormous depreciation of the Cedi and thereby help in correcting the economic imbalance in the country. As much as possible, Ghanaians must support such a policy so that the entire country will benefit from this good deal.
Email address/whatsApp number of author:
Pradmat201@gmail.com (0553318911)
By Dr. Kofi Amponsah-Bediako
Features
Traffic jam on Weija-Kasoa highway
I experienced something on Monday, June 15, that really frustrated me. I had to go to the ministries but I could not get up early that day so I decided to pick a taxi and get to the Tuba Junction.
When I got there I realised that Traffic had built up from the Toll Booth towards Accra. After a while I got a Taxi and it was when we got to a certain spot on the road, that I realised why there was a traffic jam.
There is a short stretch of the road where each time it rains heavily, loose material run down the hill onto the road, blocking one side of the road. Vehicles from Kasoa to Accra are then forced to move into one of the lanes of those going towards Kasoa from Accra.
The two lane road from Accra to Kasoa becomes a single carriage way. That was the reason for the traffic jam from the toll booth onwards.
This has been a perineal problem and yet, no permanent solution has been found till date. The area falls under Ga South and even though, a new MCE has taken over, the technocrats are still there and so the problem is not new to them.
There is therefore no excuse for the inability of the Ga South Metropolitan Assembly to resolving the problem on that stretch of the road. Apart from the Ga South Metropolitan Assembly, another institution that must be held accountable is the Ghana Highways Authority.
The Highways Authority cannot say they are unaware of this issue. The fact that the problem falls within the area of responsibility of the Ga South Assembly, does not relieve the Ghana Highways Authority, of their responsibility of ensuring that our highways are maintained in a motorable state at all times.
A collaboration between the Ghana Highways Authority and The Ga South Municipal Assembly is required for a permanent resolution of the problem.
There was another traffic jam at a place called Atala about 250 metres to the traffic light at Old Barrier as a result of an issue similar to the one close to the toll booth, that I talked about earlier.
When we got to Weija junction, we encountered another traffic jam. The cause of this jam was a bad condition of road about 80 metres from the traffic light at Ga South Hospital heading towards Accra.
Due to the bad nature at that section of the road, vehicles are compelled to slow down resulting in a traffic jam stretching all the way to Weija Junction.
I started wondering if that short stretch of road cannot be sorted on one Sunday when traffic is usually light. When we got to the traffic light at Odorkor, there was another issue.
When the traffic light shows green, there is a slow down because there is a big pothole or should I say manhole in the outer lane, right at the traffic light. Vehicles in the outer lane are compelled to swerve into the second lane thereby causing a traffic to slow down and resulting in a traffic jam.
It is very important to take into account the effect of traffic jam on the national economy. If we are able to assess the value of the loss to the economy of the nation, I believe the issue of traffic jam will be prioritised.
Imagine persons working at various Government Organisations like Registrar General’s Department, Ghana Ports and Habours Authority, Ghana Revenue Authority, CEPS etc. and lives at Kasoa and whose job is to collect revenue for the state and is held up in traffic.
Just imagine the effect their lateness to work will have on the economy if you consider the delays in say clearing of goods at the port and as a result traders cannot sell their goods for government to generate the required taxes.
Let us deal with the traffic jams on our streets to promote economic growth. God bless.
By Laud Kissi-Mensah
Features
Understanding mortality: Exploring the complexities of human existence
Mortality is an inherent aspect of life, a universal experience that has sparked philosophical, theological, and scientific inquiry throughout human history.
This article aims to provide a comprehensive and nuanced exploration of mortality, acknowledging the complexity of the topic and the diverse perspectives surrounding it.
The biological imperative
From a biological standpoint, death is a natural part of the life cycle. It serves as a mechanism for the evolution of species, allowing for the passing on of genetic material and the adaptation to environmental changes.
Evolutionary perspective: Death allows for the recycling of resources, promoting the survival and adaptation of species.
Life span and senescence: Cellular aging and the limitations of biological systems contribute to mortality.
Philosophical and existential perspectives
Existentialism: Emphasises individual freedom and responsibility in the face of mortality.
Meaning and purpose: The finite nature of life can prompt individuals to seek meaning and purpose.
The human condition: Mortality is a fundamental aspect of the human experience, shaping our perceptions and values.
Cultural and spiritual views
Afterlife and spirituality: Many cultures and religions believe in an afterlife or spiritual continuation.
Rituals and mourning: Cultural practices surrounding death reflect the significance of mortality in human experience.
Legacy and remembrance: The impact of one’s life can transcend mortality.
Ethical considerations
End-of-life care: Ethical debates surround issues like euthanasia, assisted dying, and palliative care.
Quality of life: Balancing the value of life with the quality of life is a complex ethical issue.
Resource allocation: Societal decisions about healthcare and resource distribution involve considerations of mortality.
Psychological impact
Grief and loss: The experience of mortality can evoke profound emotional responses.
Fear and anxiety: The awareness of mortality can lead to existential anxiety.
Appreciation and gratitude: Recognising mortality can foster appreciation for life.
Conclusion
Mortality is a multifaceted aspect of human existence, influencing how we live, relate, and find meaning. Understanding and acknowledging mortality can prompt deeper reflections on life and our place in the world.
By Robert Ekow Grimmond-Thompson
News1 week agoNFS, AACMA raise GH¢300K for new fire tender
News6 days agoFSD Africa, others launch Green Project Preparation Facility to unlock investment in climate infrastructure in Ghana
News6 days agoMerck Foundation holds 13th Africa Asia Luminary with 12 First Ladies to advance healthcare capacity across Africa and Asia




