The Bank of Ghana (BoG) has officially launched the Ghana Gold Coin (GGC), a new investment option for Ghanaians.
The coin, manufactured from dore gold refined to 99.99% purity, features the Ghana Coat of Arms on the front and the Independence Arch on the back.
GGC details and packaging
Each coin is presented in a package that includes a wooden storage box, a transparent coin holder, and a certificate of ownership.
Monetary tool for liquidity management
Dr. Ernest Addison, Governor of the BoG, introduced the GGC at the Monetary Policy Committee (MPC) press briefing.
He explained that the coin issuance would serve as a tool to absorb excess cedi liquidity in the banking sector, supplementing existing instruments like BoG bills and overnight deposits for open market operations.
Investment opportunity for Ghanaians
The GGC offers residents in Ghana an additional investment avenue tied to the BoG’s domestic gold purchase program.
Gold, according to Dr. Addison, has proven to be a resilient financial asset and can serve as a hedge during economic uncertainty.
The issuance of the GGC democratizes access to gold investments, enabling Ghanaians to diversify their portfolios.
Coin purchase and pricing
The GGC can currently only be purchased in Ghana through commercial banks using the Ghana Cedi.
The price will be based on the previous day’s London Bullion Marketing Association (LBMA) auction PM price.
The exchange rate applied will be the previous day’s Bloomberg REGN Mid-Rate for Dollar to Cedi.
Daily prices will be published on the BoG website by 9:00 am GMT.
Buyback options for coin holders
Holders of the GGC will have the option to sell the coin to commercial banks.
In instances where commercial banks are unable to purchase the coin, the BoG will be ready to buy and resell it.
Responsible gold sourcing and compliance
The gold used in the GGC is sourced from traceable and responsibly mined locations in Ghana, adhering to the BoG’s Responsible Gold Sourcing Framework.
Anti-money laundering (AML) and counter-terrorism financing safeguards are in place to ensure the buying and selling of the coins remain free of criminal activity.
Commitment to financial innovation
Dr. Addison emphasized that the GGC represents the BoG’s dedication to innovation, market development, and expanding investment options for residents of Ghana.
The BoG plans to release a detailed Q&A document to further explain the GGC issuance.
