Ghana issues gold coin to boost domestic savings

Ghana’s Central Bank launched a new gold coin to boost domestic savings, manage liquidity, and strengthen the Cedi currency.

The coin, made from gold mined in Africa’s biggest producer of the metal, has been refined to 99.99% purity, Governor of the Bank of Ghana Ernest Addison told reporters.

The coin comes in three sizes of one, half and a quarter ounce coin, he said.

“The Ghana gold coin enables the Bank of Ghana to mop up excess liquidity in the banking sector and will supplement the bank’s bills for liquidity management,” Addison said.

“It gives those resident in Ghana an additional avenue to invest to reap the benefits of the Bank of Ghana’s domestic gold purchase program,” he said.

The gold coin is the latest measure by the Ghanaian central bank to boost demand for the cedi currency.

Ghana also took steps to bolster the Ghanaian cedi when it launched the “gold for oil scheme.” Under that arrangement, the central bank required large gold producers to sell the gold at a 20% discount.