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Economist Professor Godfred Bokpin has expressed skepticism about the effectiveness of the newly introduced Ghana Gold Coin in addressing the depreciation of the cedi.
The Bank of Ghana (BoG) launched this initiative as part of its domestic gold programme to absorb excess liquidity and curb dollar hoarding, with the hope of strengthening the local currency.
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The coin, which will be available in one-ounce, half-ounce, and quarter-ounce denominations, is intended to offer an investment alternative to the public. However, while Prof. Bokpin acknowledges the effort by the BoG, he does not believe it offers a comprehensive solution to the underlying factors causing the cedi’s depreciation.
In an interview with Citi FM’s Eyewitness News, Bokpin emphasized that economic fundamentals—such as fiscal discipline, reducing import dependency, and adding value to raw commodity exports—are key to stabilizing the cedi. He warned that the coin should not be seen as a replacement for broader economic management, stating, “This is not the solution… it doesn’t substitute for managing the economy well.”
Bokpin reiterated that although the Ghana Gold Coin is a welcome alternative, it does not address the deeper structural issues that need to be tackled to sustainably stabilize the cedi.
