Bank of Ghana launches gold coin to provide investment opportunities for Ghanaians
The Bank of Ghana (BoG) has launched the Ghana Gold Coin (GGC) to create alternate investment for Ghanaians.
The GGC is a coin manufactured from dore gold that has been refined to 99.99% purity, which gives the coin the original gold colour.
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
Dr Ernest Addison, the Governor of the Central Bank, who launched the initiative at the Monetary Policy Committee (MPC) press briefing, said the coin issuance would enable the Bank to mop up extra cedi liquidity in the banking sector and will supplement the use of the Bank of Ghana Bills and overnight deposit for open market operations.
It gives savers resident in Ghana an additional avenue to invest and reap the benefits from the Bank of Ghana’s domestic gold purchase programme, he said.
He said gold had shown remarkable resilience as a financial asset and could serve as a natural hedge during periods of economic turbulence.
The issuance of the GGC democratises access to this enduring financial asset, enabling residents to diversify their financial portfolios.
He said for now, the Coin could 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.
He said the applicable transaction exchange rate for pricing of the coin would be the United States Dollar against Ghana Cedi rate quoted using the previous day close Bloomberg REGN Mid-Rate.
“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,” he added.
He said a holder of a GGC could sell the coin to a commercial bank, adding the Bank of Ghana was ready to buy and resell in situations where a commercial bank was unable to purchase a coin due.
The Governor said gold used for the manufacture of the GGC were 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,” he added.
Dr Addison said the BoG would publish a questions and answers document to provide more insight into the GGC issuance.
He said the issuance of the GGC was a testament to the Central Bank’s commitment to innovation, deepening of the financial markets and providing more avenues for residents to invest in Ghana.
Source: GNA