Ghana’s Gold Coin Launch: A Cedi liquidity mop-up or avenue for investment?
Gideon Asare
Lead Research Analyst at Agpaytech Ltd - UK: Researching on emerging technologies, digital banking, FinTech, payment systems, regulations, remittance, etc.) & Scientific Research.
?? The Bank of Ghana has today launched a gold-backed asset/money known as the Ghana Gold Coin #GGC).
? The GGC is a coin manufactured from #doregold that has been refined to 99.99% purity, which gives the coin the original gold colour.
? The GGC is issued and #guaranteed by the Bank of Ghana and is available in three different sizes: namely 1 oz Coin, 1/2 oz Coin and 1/4 oz Coin to suit different investment needs.
? A holder of a GGC can sell the #coin to a #commercialbank.
? For now, the GGC can only be purchased in Ghana through a commercial bank using the #GhanaCedi, and the basis for pricing will be the previous day London Bullion Marketing Association (#LBMA) Auction PM Price.
? The applicable transaction exchange rate for pricing of the GGC shall be the United States #Dollar against Ghana #Cedi rate quoted using the previous day's close Bloomberg REGN Mid-Rate.
?? Ghana Gold Coin Benefits
?? The GGC issuance enables the BoG to mop up extra cedi #liquidity in the banking sector and will supplement the use of the Bank of Ghana Bills and overnight depo for our open market operations.
?? The GGC gives savers resident in #Ghana an additional avenue to invest and reap the benefits from the Bank of Ghana’s domestic gold purchase program.
?How do you reconcile Ghana’s Gold Coin to Zimbabwe’s gold-backed digital currency for peer-to-peer and peer-to-business transactions?