Gold Coin Price Drops Amid Cedi Gains

 

The Bank of Ghana’s (BoG) gold coin, available in three variants—a one-ounce coin, a half-ounce coin, and a quarter-ounce coin—has experienced a price reduction as of December 9, 2024.

The coins are now priced at GH¢41,001, GH¢20,905, and GH¢10,887, respectively, reflecting a decline from their November 26 rates of GH¢45,020, GH¢22,409, and GH¢11,188.12.

This downward adjustment is attributed to the local currency’s recent appreciation against the US dollar.

The cedi’s gain follows the successful completion of Ghana’s third International Monetary Fund (IMF) programme review, which unlocked a $300 million tranche from the IMF.

According to the Bank of Ghana (BoG), the local currency has posted significant gains against major international currencies—the US dollar, British pound, and euro—between late October and November.

During this period, the cedi appreciated by 6% against the dollar, 7.6% against the pound, and 9.1% against the euro.

The pricing of the gold coin is based on the previous day’s London Bullion Market Association (LBMA) PM gold price of $2,648, converted using Bloomberg’s USD to GHS exchange rate of 14.900.

This initiative is part of the central bank’s Domestic Gold Purchase Programme, designed to reduce market liquidity and stabilize the cedi amid ongoing economic challenges.

The BoG, in move to bolster investor confidence and shield the local currency from global market volatility, tied the Ghana Gold Coin to the country’s reserves,

Economic analysts have praised the programme as a strategic move to leverage Ghana’s gold resources for macroeconomic stability.

The central bank describes it as a testament to its commitment to innovative financial strategies that promote wealth preservation and economic resilience.

It said this approach aligns with global trends that view gold as a hedge against inflation and currency fluctuations.

A Business Desk Report