The Governor of the Bank of Ghana, Dr. Ernest Addison, has officially launched the Ghana Gold Coin (GGC), a new financial instrument designed to deepen the country’s financial markets and offer alternative investment options.
Speaking at the launch on September 27, 2024 Dr. Addison emphasised that the introduction of the GGC marks a significant milestone in the Bank of Ghana’s history.
“This initiative is a testament to our unwavering commitment to deepen financial markets by offering other avenues for savers to invest,” he stated.
The governor also noted that the coin is symbolic of Ghana’s rich gold heritage, reminding attendees of the nation’s historical ties to the precious metal.
The Ghana Gold Coin, manufactured from dore gold refined to 99.99% purity is available in three sizes: 1 ounce, 1/2 ounce and 1/4 ounce.
Dr. Addison elaborated on the design, saying “Each coin has the Ghana Coat of Arms in front and the Independence Arch at the back. The packaging includes the gold coin, a wooden storage box, a transparent coin holder, and a certificate of ownership.”
In addition to its aesthetic and symbolic value, the issuance of the GGC offers practical economic benefits.
Dr. Addison explained, “The GGC issuance enables the Bank of Ghana to mop up extra cedi liquidity in the banking sector and will supplement the use of the Bank of Ghana Bills” and overnight deposit for our open market operations.”
He added that the coin offers an alternative investment avenue for savers, particularly those within Ghana, while also providing a hedge against economic instability.
“Gold has shown remarkable resilience as a financial asset and can serve as a natural hedge during periods of economic turbulence,” he remarked.
The governor assured the public that the GGC can be easily purchased and traded through commercial banks in Ghana using the cedi.
The coin’s price will be based on the London Bullion Marketing Association (LBMA) Auction PM Price from the previous day, and exchange rates will be determined using the United States Dollar against Ghana Cedi rate from Bloomberg’s close of the previous day.
“The price of the GGC will be published on the Bank of Ghana website daily by 9:00 a.m. GMT, and applicable charges will apply,” he explained.
In line with global standards, the GGC has been manufactured using gold sourced from traceable, responsibly mined sources within Ghana.
Dr. Addison assured stakeholders that the issuance adheres to the Bank’s Responsible Gold Sourcing Framework, adding “Anti-Money Laundering/Countering the Financing of Terrorism (AML/CFT) safeguards are in place to ensure that the buying and selling of the GGCs is devoid of criminal financial activities.”
He concluded his address with optimism for the future, highlighting the Bank’s commitment to innovation and deepening financial markets in the country.
“The issuance of the GGC is a testament to our commitment to innovation, deepening of our financial markets, and providing more avenues for residents to invest in Ghana. Long live Ghana! and make our nation great and strong!” Dr. Addison declared.
