BoG launches Gold Coin to discourage hoarding of dollars

The Bank of Ghana (BoG) has unveiled the Ghana Gold Coin, a new investment initiative aimed at reducing dollar hoarding.

As part of the domestic gold programme, this initiative seeks to absorb excess liquidity in the market and strengthen the local currency against major trading currencies.

The coin will be available in three denominations: a one-ounce coin, a half-ounce coin, and a quarter-ounce coin, and will be sold in commercial banks within two weeks.

Speaking at the Monetary Policy Committee (MPC) meeting on Friday, September 27, Dr. Ernest Addison, Governor of the Bank of Ghana, announced that the prices for the coins will be published on the BoG’s website.

“The Ghana Gold Coin is manufactured from dowry gold dug out of Ghana, which has been refined to 99.99 per cent purity. It is issued and guaranteed by the BoG.

“It will be available in three different units. That is the one-ounce coin, the half-ounce coin and the quarter-ounce coin to suit different investment dates. Each coin has the Ghanaian quote of arms in front and the independence arch at the back.

“The packing of the gold coin will be a wooden story box, a transparent coin holder and a certificate of ownership. 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 gives savers residence in Ghana, an additional avenue to invest, and reap the benefits of the BoG domestic Gold purchase programme.”

This strategic move aligns with the Bank of Ghana’s efforts to stabilise the economy and promote investment in Ghana’s gold reserve.

The next Monetary Policy Committee meeting is scheduled for November 20-22, 2024.

The meeting will conclude on Monday, November 25, 2024, with the announcement of the policy decision.