The Bank of Ghana introduces the Ghana Gold Coin to stabilize the cedi, absorb market liquidity, and offer investors a gold-backed asset for wealth preservation
The Bank of Ghana (BoG) has introduced the Ghana Gold Coin (GGC), a new investment option aimed at diversifying the country’s financial instruments and absorbing excess market liquidity.
Made available from November 26, 2024, the coins come in three denominations—1.00 oz, 0.50 oz, and 0.25 oz, priced at GH₵45,020.48, GH₵22,409.74, and GH₵11,188.12, respectively.
The coin’s pricing is linked to the London Bullion Market Association (LBMA) PM gold price, with adjustments based on Bloomberg’s USD to GHS exchange rate. For instance, the pricing is benchmarked to the LBMA gold price of $2,635.40 and an exchange rate of 15.7500, ensuring global alignment(Bank of Ghana gold coin).
The Ghana Gold Coin is part of BoG’s domestic gold programme, designed to stabilize the Ghanaian cedi by tying the coin to the nation’s gold reserves. Analysts view this initiative as a strategic move to leverage Ghana’s gold wealth to counter inflationary pressures and bolster economic resilience.
The initiative strategically ties the Ghana Gold Coin to the nation’s gold reserves, a move designed to instill investor confidence while reinforcing the stability of the Ghanaian cedi. By anchoring the local currency to a tangible asset, the central bank positions the cedi to withstand volatility in global financial markets and safeguard against inflationary pressures.
“The programme reinforces the Bank of Ghana’s commitment to innovative solutions for wealth preservation,” the BoG stated, highlighting gold’s role as a hedge against currency depreciation and inflation.
The gold coin appears to offer an opportunity for investors seeking a safe haven asset amidst volatile financial markets. Market observers are closely monitoring its uptake, which could signal broader acceptance of innovative financial products in Ghana.
