Economist, Professor Godfred Bokpin, has weighed in on the recent Ghana Gold Coin by the Bank of Ghana (BoG), describing it as a positive intervention but not a complete solution to the country’s economic challenges.
The Ghana Gold Coin, introduced as part of the central bank’s domestic gold programme, aims to discourage dollar hoarding by offering an alternative investment tool.
The initiative is also designed to absorb excess liquidity in the market and strengthen the local currency against major international currencies.
Speaking on Eyewitness News on Friday, September 27, 2024, Prof. Bokpin acknowledged the initiative but questioned its effectiveness in addressing the broader economic issues.
“I think I associate with the intervention by the central bank to the extent that there are very limited alternative avenues right now in the market. Therefore, any avenue attempt to offer alternatives will be welcomed. The next important question, as you rightly asked, is whether this is the solution we have been waiting for all this while. I think it is not too hard to conclude that this is not the solution,” he stated.
“In as much as we acknowledge that this is an alternative, the market is dry largely also because of the lack of confidence and all, this is not the solution.
“We can look at it from two angles; the introduction of the gold coin is not a substitute for managing the economy well, it is not. I want to also believe that it is packaged as a substitute for managing the economy well. The fundamental driving factors pushing the cedi to lose its own against the major trading currency when it comes to fiscal discipline when it comes to enhancing the productive capacities of the economy, less import reliance, and adding value to the export of your raw commodity, this doesn’t substitute for all of that,” he added.
Meanwhile, the BoG noted that the coin will be available in three denominations: one-ounce, half-ounce, and quarter-ounce coins, and will be sold in commercial banks within two weeks. Pricing details will be published on the BoG website.
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