Economics Professor Godfred Bokpin has expressed doubts about the effectiveness of the newly launched Ghana Gold Coin as a solution to the persistent depreciation of the cedi.

The Bank of Ghana (BoG) unveiled the Ghana Gold Coin on Friday, as part of its domestic gold programme, aimed at curbing dollar hoarding and stabilising the local currency.

According to the BoG, the initiative seeks to absorb excess liquidity in the market and strengthen the cedi against major trading currencies.

The gold coin, which will be available in three denominations — one-ounce, half-ounce, and quarter-ounce — will be sold through commercial banks within two weeks.

Prices for the coins will be published on the BoG’s website, as announced by Governor Dr. Ernest Addison during the Monetary Policy Committee (MPC) meeting on Friday, September 27.

Despite the ambitious goals of the Ghana Gold Coin initiative, Professor Bokpin remains unconvinced.

In an interview with Citi FM on the same day, he argued that while the programme may have some short-term benefits, it is not a sustainable or comprehensive solution to address the cedi's structural challenges.

Professor Bokpin pointed out that the cedi’s depreciation is driven by deeper economic issues such as Ghana’s high import dependence, fiscal deficits, and external debt pressures.

These structural problems, he said, cannot be solved by introducing a new investment tool like the Ghana Gold Coin alone.

He further stressed that while the initiative may absorb some excess liquidity and reduce pressure on the cedi, it will not address the root causes of the currency’s volatility.

Prof. Bokpin called for broader economic reforms, including diversifying exports, improving fiscal management, and reducing reliance on foreign currencies, to strengthen the cedi in the long term.

Professor Bokpin emphasised the need for a more holistic approach to stabilising the cedi, warning that relying solely on initiatives like the Ghana Gold Coin could lead to temporary relief but not lasting stability for the local currency.

“I associate with the intervention from the central bank to the extent that there are very limited alternative avenues right now in the market and therefore any genuine attempt to offer alternatives would be welcomed and the next important question as you rightly asked is whether this is the solution."

“We have been waiting for this all this while and I think it is not too hard to look for that and to conclude that that is not the solution.”

“The reason is as much as we acknowledge that this is an alternative, the market is dry largely also because of confidence and all of that. This is not the solution.”

Prof Bokpin stressed that the introduction of the coin was not a substitute for managing the economy well."

“I want to believe that it is not packaged as a substitute for managing the economy well because the fundamental thriving factors pushing the cedi to lose its own against the major trading currencies when it comes to fiscal discipline when it comes to enhancing the capacity of the local economy, less import reliance, adding value to the export of your raw commodities, this doesn’t substitute for all of that,” he added.