Tax expert Mr. Geoffrey Kabutey Ocansey has opined that the gold coin initiative is a great investment plan, but the timing was bad.
He said such an investment plan would have been a great policy for Ghanaians to subscribe to.
However, the haircut Ghanaians suffered with their bonds has painted a gloomy picture of any investment initiative introduced by the government through the Bank of Ghana.
He asserted it would have been more prudent if the gold coin had been introduced in 2017.
The gold coin initiative boasts considerable investment potential, but the current timing is unfavorable. In light of the bondholder haircut and its devastating consequences, including inaccessible funds, the public may be skeptical about this investment plan, potentially interpreting it as a means to exploit them, he remarked during Rainbow Radio 87.5FM’s Frontline programme.
He noted that some of the explanations given by the Governor of the Central Bank, Ernest Addison, were convincing, with the exception of their ability to prevent the hoarding of the dollar.
The BoG last week launched the Ghana gold coin to provide more investment opportunities to Ghanaians.The gold coin is an initiative under its Gold Purchase Programme.According to the Governor of the BoG, the coin will be available on the market in the next two weeks.
Addressing the media at the Monetary Policy Committee (MPC) press conference on Friday, September 27, the Governor of the Bank of Ghana said potential investors can purchase the gold coins in three different ounces in all commercial banks across the country.
The ounces include the half-ounce coin and the quarter-ounce coin to suit different investment needs.He said the coin would help ease pressure on the local currency, as individuals who buy dollars and hoard them as a form of investment can now buy the gold coins instead.
But Mr. Osabutey posited that this aspect of the explanation was inaccurate.
”With all due respect, the governor’s assertion that the coin would alleviate dollar hoarding is misguided. He overlooked key factors. Dollar hoarding involves not only individuals but also business owners, traders, and currency speculators who buy and sell dollars. This demographic cannot be disregarded. Those needing dollars for academic fees and expenses also engage in dollar hoarding. Yet, the Bank of Ghana’s efforts target merely a fraction of these individuals. The Bank of Ghana has struggled to address the dollar challenge, including illicit black market operations nationwide. Approximately 50% of dollar holders are traders or businesses.”
By: Rainbowradioonline.com/Ghana
