Ghana Launches Gold Coin to Manage Liquidity, Boost Savings

AFRICAN BUSINESS AND ECONOMYSeptember 27, 2024 at 2:27 PM UTC

TLDR

Ghana unveils new gold coin made from locally mined gold, aimed at managing liquidity in the money market.
Three sizes available - one ounce, half an ounce, and a quarter ounce - issued and guaranteed by the central bank.
Part of the central bank's strategy to mop up excess liquidity and provide alternative investment avenue for residents.

Ghana has introduced a new gold coin aimed at managing liquidity in the money market while encouraging domestic savings.

The coin, made from locally mined gold refined to 99.99% purity, was unveiled by the Governor of the Bank of Ghana, Ernest Addison, in Accra on Friday. The coin comes in three sizes—one ounce, half an ounce, and a quarter ounce—and is issued and guaranteed by the central bank.

The gold coin is part of the central bank’s strategy to "mop up excess liquidity in the banking sector" and supplement its existing liquidity management tools, according to Addison. The coins offer residents an alternative investment avenue, benefiting from the central bank’s domestic gold purchase program.

Key Takeaways

Ghana’s gold coin launch is a strategic move by the central bank to enhance liquidity management and promote domestic investment in gold. Priced based on the London Bullion Market Association auction price, the coins will be available through commercial banks within two weeks. Since launching its domestic gold purchase program in June 2021, the Bank of Ghana has bought 65.4 tons of gold valued at around $5 billion. The initiative also supports the nation’s foreign reserves and contributes to Ghana’s “gold for oil” program. The initiative aligns with the country's broader efforts to strengthen its foreign reserves and leverage its status as Africa's top gold producer.

Ghana

Bank of Ghana

Gold Coin

Accra

Gold Producer

Economy