Wednesday, December 11, 2024

“Gold Coin Prices Decrease as Cedi Strengthens”

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The Bank of Ghana’s gold coin, available in three variants—a one-ounce coin, a half-ounce coin, and a quarter-ounce coin have witnessed a price drop on December 9, 2024.

The coins are priced at GH₵41, 001, GH₵20,905, and GH₵10,887 respectively, reflecting a decline from the November 26 rates of GH₵45,020, GH₵22,409, and GH₵11,188.12.

The downward adjustment in prices stems from the Ghana cedi’s recent appreciation against the US dollar.

The cedi’s rally is largely attributed to the successful conclusion of Ghana’s third IMF programme review, which unlocked a $300 million tranche from the International Monetary Fund.

According to the Bank of Ghana, the local currency has recorded significant gains against major international currencies—the dollar, pound, and euro—between late October and November.

The cedi appreciated by 6% against the dollar, 7.6% against the pound, and 9.1% against the euro during the period.

The pricing of the gold coin is determined based on the previous day’s London Bullion Market Association (LBMA) PM gold price of $2,648, converted using Bloomberg’s USD to GHS exchange rate of 14.900.

This initiative forms part of the central bank’s Domestic Gold Purchase Programme, aimed at reducing market liquidity and stabilizing the cedi amidst ongoing economic challenges.

By tying the Ghana Gold Coin to the nation’s gold reserves, the Bank of Ghana seeks to reinforce investor trust and cushion the local currency against the unpredictability of global markets.

Economic analysts have lauded this measure as a strategic approach to harnessing Ghana’s gold resources for macroeconomic stability.

The central bank has described the programme as a testament to its commitment to innovative financial strategies that promote wealth protection and economic resilience, aligning with global trends that see gold as a safeguard against inflation and currency fluctuations.

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