Economist Professor Godfred Bokpin has shared his thoughts on the recent Ghana Gold Coin initiative introduced by the Bank of Ghana (BoG), describing it as a positive step, but not a comprehensive solution to the country’s economic challenges.
The Ghana Gold Coin, launched as part of the central bank’s domestic gold programme, aims to reduce dollar hoarding by providing an alternative investment option.
It also seeks to absorb excess liquidity in the market and help strengthen the local currency against major international currencies.
Speaking on Eyewitness News on Friday, September 27, 2024, Prof. Bokpin acknowledged the initiative but raised concerns about its overall effectiveness in tackling broader economic problems.
“I support the central bank’s intervention, especially given the limited alternative investment options available in the market. Any attempt to provide alternatives is welcome.
However, the critical question is whether this is the solution we’ve been waiting for. I believe it’s clear that this is not the ultimate solution,” he said.
He added, “While we appreciate the introduction of the gold coin as an alternative, it doesn’t address the deeper issues like lack of confidence in the market. This coin is not a substitute for sound economic management.
It’s important to recognize that factors such as fiscal discipline, boosting productive capacity, reducing reliance on imports, and adding value to raw exports are key drivers for stabilizing the cedi. The gold coin doesn’t replace the need for those efforts.”
Meanwhile, the BoG has announced that the coin will be available in three denominations: one-ounce, half-ounce, and quarter-ounce, and will be sold in commercial banks within two weeks. Pricing details will be posted on the BoG website.
