Dr. Ernest Addison – Governor of Bank of Ghana
The Bank of Ghana (BoG) has launched the Ghana Gold Coin (GGC), a 99.99% pure gold coin, in a bid to stabilize the cedi and expand investment opportunities.
“Ladies and Gentlemen, Distinguished Guests, I am honored to launch the Ghana Gold Coin (GGC), a development which marks a significant milestone in the Bank of Ghana’s history,” said Dr. Ernest Addison, Governor of the Bank of Ghana.
According to Dr. Addison, “This initiative is a testament to our unwavering commitment to deepen financial markets by offering other avenues for savers to invest. It also serves as a significant reminder of our nation’s rich gold heritage.”
Economic Benefits
The GGC issuance enables the BoG to mop up extra cedi liquidity in the banking sector and will supplement the use of the Bank of Ghana Bills and overnight deposits for open market operations, Dr. Addison explained.
“The GGC gives savers resident in Ghana an additional avenue to invest and reap the benefits from the Bank of Ghana’s domestic gold purchase program. Gold has shown remarkable resilience as a financial asset and can serve as a natural hedge during periods of economic turbulence,” he added.
Features of the Gold Coin
Dr. Addison outlined the key features of the GGC: “The GGC is issued and guaranteed by the Bank of Ghana and is available in three different sizes: namely 1 oz Coin, 1/2 oz Coin, and 1/4 oz Coin to suit different investment needs”.
“Each coin has the Ghana Coat of Arms in front and the Independence Arch at the back. The packing includes the gold coin, a wooden storage box, a transparent coin holder, and a certificate of ownership.”
Pricing and Purchase
Regarding pricing and purchase, Dr. Addison stated: “For now, the GGC can only be purchased in Ghana through a commercial bank using the Ghana Cedi, and the basis for pricing will be the previous day London Bullion Marketing Association (LBMA) Auction PM Price”.
“The applicable transaction exchange rate for pricing of the GGC shall be the United States Dollar against Ghana Cedi rate quoted using the previous day’s close Bloomberg REGN Mid-Rate.”
He added that “the price of the GGC will be published on the Bank of Ghana website daily by 9:00 am GMT and applicable charges will apply.”
Resale and Anti-Money Laundering Safeguards
Dr. Addison assured that “a holder of a GGC can sell the coin to a commercial bank, the Bank of Ghana stands ready to buy and resell in situations where a commercial bank is not able to purchase a coin.”
He emphasized that “gold used for the manufacture of the GGC are from traceable, responsibly mined sources in Ghana in line with the BoG’s Responsible Gold Sourcing Framework. 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.”
-BY Daniel Bampoe