Bank of Ghana to launch New Gold Coin as form of investment

 

On September 27, 2024, the central bank, BoG, officially introduced a new investment vehicle called the Ghana Gold Coin to offer Ghanaians an alternative to traditional financial investments. This is pursuant to the broader strategy of the central bank in augmenting domestic savings and de-dollarizing the economy.

Overview of the Ghana Gold Coin

The Ghana Gold Coin is made from dory gold, mined from local mines and refined into 99.99% purity. It will be sold in three weights: one ounce, half-ounce, and quarter ounce, catering to different investment tastes and preferences for Ghanaians. The coins will be issued and guaranteed by the Bank of Ghana and can be purchased through all commercial banks across the country within the next two weeks.

Purpose and Benefits

The Ghana Gold Coin was introduced to meet many ends:
Investment Diversification: It offers an alternative for the Ghanaian investor who seeks to invest onshore with no need to depend on foreign currencies or conventional monetary instruments, such as treasury bills and bonds.

Economic Stability: The initiative, hence, discourages the culture of investing in foreign currencies with a view to easing some pressure off the local currency-the cedi-so as to stabilize its value on the market.

Support for Local Mining: Production of the coin from locally sourced gold symbolizes Ghana's rich natural resources and supports the domestic mining industry.

Governor's Remarks

His Excellency, the Vice President, the Governor of Bank of Ghana during the launch event reiterated that this was part of wider Gold Purchase Programme aimed at engendering financial security among the citizenry. To him:
"If you are not buying dollars, you will be buying treasury bills or bonds. We are giving you an opportunity through the domestic gold purchasing program to also buy gold".
This statement highlights the central bank's commitment to providing Ghanaians with secure investment options that can help mitigate economic uncertainties.

Conclusion

The introduction of the Ghana Gold Coin represents one of the most ambitious policies to promote investment opportunities for Ghanaians and bring stability to the economy. 

In so doing, the central bank is working to ensure that the country's financial environment is more robust, thereby economically empowering its citizens. Given the novelty of this initiative, there is a need for close monitoring of its implications for both individual investors and the overall economy.