The African Highest Gold Producing Country, Ghana to Buy Oil with Gold instead of Dollars Staring 2023
As reported by Reuters News on 24th/Nov/2022, Ghana to Buy Oil with Gold. Ghana plans to drop US Dollars in oil transactions in favor of Gold as per Ghana’s vice president Mahamudu Bawumia.
The dwindling foreign currency reserves especially Dollars has led to weakening of their local currency, cedi and instant inflation. By using Gold as a mode of transaction specifically for oil, they will manage to stabilize their currency.
It is estimated that Ghana’s Gross International Reserves stands at around $6.6 billion yet their expense on oil is far more. This implies higher demand for foreign exchange and a weaker local currency.
If this resolution is passed, Ghana will become the first country to eliminate US dollars in oil transactions and this may influence other African countries to adopt the same measures.
It should be noted that Ghana is the biggest Gold producing country in Africa and 6th in the whole world. Therefore, if they decide to use Gold to buy oil, it seems idealistic.
What is the Implication of this to the gold markets in Africa and the whole world?
- The demand for Gold bars from Africa is going to sky-rocket and so do the Gold prices especially in the Northern African Markets.
- Gold value appreciation. If you had bought your gold and haven’t sold it yet, expect increased Gold value in the near future if the resolution is passed.
- Expect more Gold producing African countries to adopt the same methodology hence more demand and price increase.
- This may also lead to decreased value of dollars and other international currencies.
- Better buy Gold Bars from Africa now before Ghana initiates buying oil with Gold and enjoy the fruits of investing in real wealthy.
Be the first to invest in Gold before the blast!