As the Ghana cedi continues its steady rise against the U.S. dollar, traders and investors are reevaluating their traditional reliance on foreign currency.
The Ghana Gold Coin (GGC), introduced by the Bank of Ghana as part of its gold-backed monetary policies, is gaining traction as a stable alternative.
Charles Kusi Appiah, Head of the Business and Economic Bureau at the Ghana Union of Traders Association (GUTA), confirms the trend. With the cedi appreciating, traders are questioning the wisdom of holding depreciating dollars. “When the cedi struggles, people turn to the dollar as a store of value, but now, the cedi is gaining,” Appiah explained. “Why hold forex when it’s losing value?”
He recounted inquiries from traders unsure what to do with their dollar reserves. His advice? Liquidate unnecessary holdings and consider gold coins instead. The Ghana Gold Coin, backed by the country’s natural reserves, offers a tangible and appreciating asset. As of April 16, 2025, the 1 oz coin is valued at GH¢51,696.18, with smaller denominations also available.
The shift is not speculative. Government initiatives like Gold4Oil, which facilitates international trade using gold instead of forex, have reduced dollar dependency. “When forex outperforms the cedi, our working capital suffers,” Appiah noted. “But now, with the cedi strengthening, holding dollars makes less sense.”
Economist Theo Acheampong supports this view, suggesting gold as a prudent hedge amid the dollar’s decline. If the trend continues, Ghana’s gold coin could see increased adoption as a long-term store of value mirroring global patterns where investors flock to gold during economic uncertainty.
This movement reflects a broader reassessment of financial security in Ghana’s evolving monetary landscape. With gold’s enduring stability, the Ghana Gold Coin may well redefine how traders and investors preserve wealth in an unpredictable economy.
