Bank Of Ghana Launches Gold Coins To Mop Up Extra Liquidity In Banking Sector
- The Bank of Ghana has launched gold coins as an alternative investment asset available to the general public
- The coins would be available in commercial banks across the country and would come in three different ounces
- Meanwhile, the central bank said the coins will help mop up extra liquidity in the banking sector
The Bank of Ghana has issued gold coins as an alternative investment asset available to the general public.
The central bank launched the coins to mop up extra liquidity in the banking sector.
Source: UGC
This is the first time the central bank has launched such an initiative.
At the launch of the coins, the Bank of Ghana governor, Dr Ernest Addison, stated that they would be available on the market in the next two weeks.
He told the media on September 27, 2024, in Accra that the gold coins could be purchased in three different ounces and would be made available in all commercial banks across the country.
The coins come in one-ounce coins, the half-ounce coins and the quarter-ounce coins.
He noted that the initiative is to allow Ghanaians to participate in the domestic gold purchasing programme.
“We call it Ghana gold coin,” he said.
Ernest Addison disclosed that the Ghana gold coin is made from gold dore dug in Ghana and refined to 99 per cent purity.
The gold coins are issued and guaranteed by the Bank of Ghana.
Banker speaks on gold coins
YEN.com.gh spoke to a banker who noted that gold may be a relatively good investment option.
Ivan Aryee explained that "gold is actually a very stable commodity. The price fluctuation isn't crazy."
He, however, stated that there is no clarity on how the gold coins would be dispensed to investors when the programme is implemented.
Cedi to weaken modestly
Analysts expect the Ghana cedi to weaken modestly between now and the December elections.
This follows steep falls earlier in the year, which saw the cedi depreciate by over 19.6 per cent against the dollar as of July 2024.
Bloomberg reported that Ghana may end the year at GH¢15.97 per dollar, according to Oyinkansola Samuel, an analyst at FirstRand Ltd.’s RMB Nigeria unit.
The cedi currently trades at GH¢15.63 to a dollar and is considered the fifth-worst-performing currency of the year.
“We expect the depreciation pace to slow going into the end of the year as multilateral disbursements and ample reserve accumulation improve market sentiments," Samuel said.
Samir Gadio, the head of Africa strategy at Standard Chartered Bank Plc, also said foreign exchange demand-supply mismatches have eased.
He said cedi depreciation could slow because of IMF disbursement and an upcoming cocoa financing facility.
Finance Minister blames debt on cedi depreciation
YEN.com.gh reported that the Finance Minister, Dr Mohammed Amin Adam, has blamed the country's ballooning debt on the cedi's rapid depreciation.
The country's debt has risen to a staggering GH¢761.1 billion, equivalent to $51.1 billion, from GH¢587.7 billion, equivalent to $53.5 billion.
The minister also blamed the situation on disbursement from multilateral institutions and domestic budget financing.
Proofread by Berlinda Entsie, journalist and copy editor at YEN.com.gh
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Source: YEN.com.gh
