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Ghana introduces new gold coin priced with global benchmarks

Ghana introduces new gold coin priced with global benchmarks

GrafaGrafa2024/10/01 02:00
By:Isaac Francis

Ghana's central bank has unveiled a gold coin aimed at promoting domestic savings and managing liquidity.

Scheduled for release in October, the coin will be available in one, half, and quarter-ounce options and priced according to the London Bullion Market Association (LBMA) auction rates.

This initiative by the Bank of Ghana (BOG) is part of its efforts to stabilize the Ghanaian cedi, which has been depreciating against the U.S. dollar.

According to a report from Bloomberg, BOG Governor Ernest Addison emphasized the significance of this launch, stating, “The Ghana gold coin enables the Bank of Ghana to mop up excess liquidity in the banking sector and will supplement the bank’s bills for liquidity management.

It provides residents in Ghana with an additional avenue to invest and benefit from the Bank of Ghana’s domestic gold purchase program.”

The coins are refined to 99.99% purity and guaranteed by the BOG, ensuring their quality and value.

The release of the gold coin follows previous efforts by the BOG to bolster the cedi, including the "gold for oil" scheme introduced in 2022.

Under that program, large gold producers were required to sell their gold to the BOG at a 20% discount to help strengthen the currency.

Despite these measures, the cedi continues to struggle.

In June 2024, the exchange rate against the U.S. dollar fell to its lowest point, largely due to lower-than-expected cocoa production figures.

Since the launch of the "gold for oil" program, the BOG has acquired 65.4 tons of gold, valued at $5 billion.

However, the gold coin initiative marks a new approach to addressing liquidity management and offering citizens a secure investment option amid ongoing currency challenges.

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Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.

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