Economics Professor Godfred Bokpin has stated that the Ghana Gold Coin initiative will not offer a practical solution to halt the cedi’s depreciation.
The Bank of Ghana (BoG) launched the Ghana Gold Coin investment program on Friday, aimed at reducing dollar hoarding as part of the domestic gold programme. The initiative seeks to bolster the local currency against major trading currencies and mop up excess liquidity in the market.
The gold coins, available in one-ounce, half-ounce, and quarter-ounce denominations, will be sold through commercial banks within two weeks. Governor Dr. Ernest Addison announced during the Monetary Policy Committee (MPC) meeting on Friday, September 27, that the coin prices will be listed on the BoG website.
Despite the program’s goals, Professor Bokpin believes that it is not a comprehensive solution to the cedi’s depreciation.
But Prof Bokpin in a report by citinewsroom.com said “I associate with the intervention from the central bank to the extent that there are very limited alternative avenues right now in the market and therefore any genuine attempt to offer alternatives would be welcomed and the next important question as you rightly asked is whether this is the solution.
“We have been waiting for this all this while and I think it is not too hard to look for that and to conclude that that is not the solution.”
“The reason is as much as we acknowledge that this is an alternative, the market is dry largely also because of confidence and all of that. This is not the solution.”
Professor Bokpin highlighted that alongside the adoption of the Ghana Gold Coin, prudent economic management remains essential for addressing the cedi’s depreciation.
“I want to believe that it is not packaged as a substitute for managing the economy well because the fundamental thriving factors pushing the cedi to lose its own against the major trading currencies when it comes to fiscal discipline when it comes to enhancing the capacity of the local economy, less import reliance, adding value to the export of your raw commodities, this doesn’t substitute for all of that,” he added.