The Bank of Ghana (BoG) has officially launched the Ghana Gold Coin (GGC) as part of its strategy to absorb excess liquidity in the banking sector and enhance the stability of the Cedi. This initiative aims to broaden the financial market and provide citizens with additional investment opportunities.
The GGC, part of the BoG’s domestic gold purchase program, offers Ghanaians an alternative to traditional investments such as dollars and bonds, further promoting the stability of the national currency. Speaking at the launch in Accra following the 120th Monetary Policy Committee (MPC) meeting, Governor Dr. Ernest Addison announced that the GGC would be available in the market within the next two weeks.
In conjunction with this launch, the MPC decided to reduce the monetary policy rate by 200 basis points, bringing it down from 29% to 27%. This marks the first rate cut since January, when the central bank previously lowered the rate from 30% to 29% in November 2023, reflecting strong economic growth and declining inflation.
Dr. Addison highlighted that the GGC, which is issued and guaranteed by the BoG, can be purchased at commercial banks across Ghana. It comes in three different sizes—one ounce, one-and-a-half ounces, and one-and-a-quarter ounces—catering to various investment preferences. He emphasized that this new product provides Ghanaians with another avenue for investment and benefits from the domestic gold purchasing program.
“Instead of purchasing dollars, you can now invest in treasury bills, bonds, or gold through the GGC. This initiative aims to diversify investment options for our citizens,” Dr. Addison stated.
He noted that gold has consistently proven to be a resilient financial asset and can serve as a hedge during economic uncertainty. The issuance of the GGC democratizes access to this valuable asset, allowing residents to diversify their financial portfolios.
Manufactured from dore gold refined to 99.99% purity, the GGC retains its original gold color. Holders of the GGC can sell their coins back to commercial banks, with the BoG ready to buy and resell in instances where banks are unable to purchase them. Dr. Addison assured that the gold used for the GGC is sourced from traceable, responsibly mined operations in Ghana, adhering to the BoG’s Responsible Gold Sourcing Framework.
Regarding the monetary policy rate cut, Dr. Addison explained that the committee’s decision was based on robust economic growth, declining inflation, and a positive external position. He noted that the domestic economy continues to show signs of recovery, supported by stronger-than-expected Gross Domestic Product (GDP) figures for the second quarter of the year.
