The Bank of Ghana (BoG) has introduced the Ghana Gold Coin (GGC) as a strategic move aimed at stabilizing the cedi against major foreign currencies while providing Ghanaians with alternative investment opportunities. This coin is crafted from dore gold that has been refined to 99.99% purity, ensuring it retains its distinctive gold color. The design of each coin features the Ghana Coat of Arms on one side and the Independence Arch on the opposite side, symbolizing national pride. The GGC will be packaged alongside a wooden storage box, a transparent coin holder, and a certificate of ownership, creating an appealing and secure presentation for investors.
Dr. Ernest Addison, the Governor of the BoG, unveiled the GGC during a Monetary Policy Committee (MPC) press conference. He emphasized that the issuance of the GGC would enable the Bank to absorb excess cedi liquidity from the banking sector while supplementing existing financial instruments like the Bank of Ghana Bills and overnight deposits. This initiative not only offers Ghanaians an additional investment avenue but also allows them to benefit from the Bank’s domestic gold purchase program. Dr. Addison noted the historical resilience of gold as a financial asset, particularly during times of economic instability, positioning the GGC as a valuable addition to personal financial portfolios.
Purchasing the GGC will initially be limited to commercial banks within Ghana, with transactions conducted in Ghana cedi. The pricing mechanism for the coins is based on the previous day’s London Bullion Marketing Association (LBMA) Auction PM Price, with the exchange rate calculated using the USD to GHS rate as per the prior day’s Bloomberg REGN Mid-Rate. Furthermore, the Bank of Ghana commits to publishing the GGC price daily by 9:00 am GMT on its website, ensuring transparency for potential investors. Applicable charges will also be disclosed, allowing savers to make informed decisions.
The GGC is designed to be a highly liquid asset; holders will have the option to sell their coins back to commercial banks. In situations where a bank is unable to make a purchase, the Bank of Ghana is prepared to buy and resell the GGC. This liquidity aspect is crucial for investors who may need to convert their assets back into cash, thus enhancing the appeal of gold as a stable investment. The gold used for crafting the GGC is sourced from responsibly mined sites in Ghana, adhering to the BoG’s Responsible Gold Sourcing Framework, which underscores the importance of ethical mining practices.
Additionally, robust Anti-Money Laundering and Countering the Financing of Terrorism (AML/CFT) measures have been instituted to ensure that transactions involving the GGC are conducted in a secure and lawful manner. Dr. Addison stressed the Bank’s commitment to maintaining the integrity of the GGC, assuring potential investors that their transactions will be free from illicit financial activities. This ensures that the GGC not only serves as a financial instrument but also aligns with global standards in combating financial crime.
In conclusion, the introduction of the Ghana Gold Coin marks a significant milestone in the Bank of Ghana’s efforts to innovate and deepen the nation’s financial markets. By providing an accessible investment option, the GGC caters to the diverse needs of Ghanaians looking to diversify their financial portfolios. Through the establishment of this initiative, the BoG reaffirms its dedication to enhancing the financial landscape in Ghana, allowing residents to take advantage of the benefits associated with gold investment. The GGC not only stabilizes the currency but also empowers the public with a sustainable financial asset, reflecting a progressive approach to economic challenges faced by the nation.
