The Bank of Ghana is introducing a new GH¢2 coin, and GH¢100 and GH¢200 banknotes denominations into circulation to complement the existing series to ensure customer convenience and bring about efficiency in the printing of currency to generate savings for the country.
According to the Governor of the Central Bank, Dr. Ernest Addison, these new higher value denominations will only restore partially the dollar value of the higher denomination GH¢200 to about US$40, not quite close to levels in 2007, but high enough to significantly reduce the deadweight burden and high transaction cost in making high-valued purchases in a cash-based economy like Ghana.
Governor of the Central Bank, Dr. Ernest Addison, launched the new notes and coin on Friday, November 29, 2019.
"The introduction of these high value notes should not be misinterpreted to mean a shift away from the Central Banks policy of pursuing a cashless society and promoting the use of electronic modes of payments. While vigorously pursuing financial inclusion by accelerating the migration to e-payment platforms, we are also mindful of the relevance of cash in our day-to-day dealings," Dr. Ernest Addison stated.
In May this year, the Bank of Ghana put into circulation, upgraded banknotes of the Ghana Cedi.
The rationale for upgrading the banknotes was primarily to enhance the security features of the banknotes in the context of an evolving technological landscape and to bring on board features that will secure the currency and make it difficult for counterfeiting.
In addition to enhancing the security features, the upgraded banknotes came with specific features to improve durability and enhance their machine readability. The upgrade exercise retained the design features of the existing series of banknotes and coins as introduced twelve years ago in 2007, in a redenomination exercise that sought to recalibrate the currency due to significant deadweight burden which was a legacy of long periods of high inflation and currency devaluation.
"In the coming days, the Bank of Ghana will embark on a nationwide campaign to educate the general public on the new denominations. I entreat every Ghanaian to study these new denominations carefully and be familiar with the main features to facilitate detection of fake currency notes. The need to properly handle our banknotes is still of significant importance and we must strive to keep them clean at all times in line with the Bank’s Clean Note Policy. In other words, ‘KNOW THE CEDI AND KEEP IT CLEAN (KCKC)," he added.
See attached full statement by Governor of the Central Bank, Dr. Ernest Addison.
Source: Peacefmonline.com
Disclaimer: Opinions expressed here are those of the writers and do not reflect those of Peacefmonline.com. Peacefmonline.com accepts no responsibility legal or otherwise for their accuracy of content. Please report any inappropriate content to us, and we will evaluate it as a matter of priority. |
As for me anytime I go to bank and they give me this kind of money I will not collect. Even if they tell me that is the only note they have I will still insist and even sleep there. It is so nun sense. You came to power to better the lives of people and not to be printing huge Bills. They introduction of the redenomination by kuffour was the cause of our hardship because prices started going up so fast, with their so called 1cedi to a dollar. Today everything is done in dollars. A land that I got and 4million old Ghana cedis in 2006 and now over 100million all because of the redenomination. The same thing will happen with the printing of these new huge notes. Prices are going to go up soon and the smaller notes are going to be irrelevant very soon. This is very wrong. What is it about this government that they are so interested in money money money.
WE HAVE BEEN TOLD SEVERAL AGAIN OF THE USE OF ECO FOR ECOWAS IN 2020. IT THIS IS TRU WHILE WASTE MONEY TO PRINT NEW DENOMINATIONS. WE MUST ALSO ENCOURAGE ELECTRONIC TRANSACTION FOR BUSINESS IN AND OUT OF THE NATION
i cant think far on this new cedis note and coin . Why BOG not educating people on electronic method of doing business ,than justified by saying a lot of people carrying many money on them to businesses. It a bad approached they should reversed it
This is what happens when 70% of a country's population is illiterate. They will not understand anything and if you try to explain to them, the will not listen
Those saying there is no wisdom in this. I say since you already don't have wisdom you wouldn't know now so kindly wait for the circulation then you will see the wisdom.
I wonder what the wisdom is behind the issuance of this higher denominations. Even wit my elementary economics, I know this will lead to high inflation and devaluation of the currency. C100 dollars we can take it if you argue that you want to synchronize with America of other advance countries, But C200? I wonder. In any case, must we also be copying the dance of someone? If we must do so, let's copy the right things. Since 2004 that I have been in the USA, for example, their one cent is as valuable today as it used to be almost 20 years ago. secondly, fuel prices fluctuate in the same range - between 1 and 4 dollars. But how much was a gallon of petrol even two years ago and how much is it now? will it ever go back to what it was even 6 months ago? Shame!!!!
Waoo Like seriously.. Eeii NANA govt
This is reckless management of the currency. The timing is wrong;it's going to fuel mad rush for USD, GBP, EURO; fuel inflation and erode the economic gains of the government. I don't believe much thought went into this. Mr. Addison think again especially the coins and the 200 notes must be withdrawn.
What about America $100 denomination?
So now the market women have to keep huge amount of money on them in the name of change Incase customers come with higher denomination. Robbers can now make more money because even if you attack a petty trader you will get not less than GHC500. 00 from him or her. Dr. Addison please this is the worse decision you have taken ever. This is a lazy way of solving the dollar-cedi problem. Instead of thinking about how to fasttrack local production to reduce the demand for the dollar you are instead cleaning the "dollar dirt" on the Cedi instead of curing the cancar