Ghana's Vice-President Mahamudu Bawumia is sworn in at the Independence square in Accra, Ghana January 7, 2017. (Photo: REUTERS)

The move is meant to tackle dwindling foreign currency reserves coupled with demand for dollars by oil importers, which is weakening the local currency and increasing living costs.

If implemented as planned for the first quarter of 2023, the new policy "will fundamentally change the country’s balance of payments and significantly reduce the persistent depreciation of its currency," Bawumia said.

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, he explained.