The Bank of Ghana (BoG) has introduced the Ghana Gold Coin as part of a strategic initiative aimed at absorbing excess liquidity from the banking sector.
This move, under the BoG’s domestic gold programme, is expected to provide Ghanaians with a new investment opportunity while stabilizing the local currency and reducing reliance on the U.S. dollar.
Speaking at the Monetary Policy Committee (MPC) meeting on Friday, September 27, Dr. Ernest Addison, Governor of the Bank of Ghana, announced that the Ghana Gold Coin will be available in three denominations: a one-ounce coin, a half-ounce coin, and a quarter-ounce coin. These coins will be sold in commercial banks within the next two weeks, with prices to be published on the BoG’s website.
“The Ghana Gold Coin is manufactured from dowry gold dug out of Ghana, refined to 99.99 per cent purity, and is issued and guaranteed by the BoG,” Dr. Addison said.
He added that the design features the Ghana coat of arms on the front and the Independence Arch on the back. “The coin will be packaged in a wooden story box, with a transparent coin holder and a certificate of ownership,” he noted.
Dr. Addison explained that this initiative aligns with the central bank’s efforts to manage liquidity and promote gold as a secure investment for residents. “The Ghana Gold enables the BoG to mop up extra liquidity from the banking sector and will supplement the use of our BoG bills. It offers an additional investment option for savers residing in Ghana to benefit from the BoG domestic gold purchase programme,” he remarked.
This introduction of the Ghana Gold Coin forms part of the BoG’s broader strategy to strengthen the economy and reduce the hoarding of foreign currencies, particularly the U.S. dollar.
The next MPC meeting is scheduled for November 20-22, 2024, with the policy decision to be announced on Monday, November 25, 2024.