The Governor of the Bank of Ghana (BoG), Dr Ernest Addison has explained that the introduction of a new GH¢2 coin as well as GH¢100 and GH¢200 banknotes into circulation is to ensure customer convenience and bring about efficiency in the printing of currency to generate savings for the country.
Addressing a press briefing today in Accra, Mr Addison disclosed that new coin and notes were decided upon after a review of the structure, acceptability and use of the individual currency which begun in March 2017.
He said the review exercise revealed the resurgence of deadweight burden issues on the economy due to past significant inflation and perennial depreciation of the currency, a significant increase in the demand for higher denomination banknote and increased cost of printing.
"Today, in line with the results of the exercise, 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," Dr Addison said.
"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".
He maintained that the introduction of the high-value notes should not be misinterpreted as a shift away from the Central Bank's 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. Undeniably, cash still remains the preferred medium of payment by the large informal sector in the country," Dr Addison stressed.
Source: graphic.com.gh
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I wished Mr. Cudjo, the President of IMANI Ghana came here for a free tutorial for widening his cope with the exercise on introducing high denomination currency notes in the system. If he did, he would have appreciated that his rudeness towards the Governor of the BoG was misplaced. By seeking to reduce the above-mentioned exercise to Mr. Addison solely priding his signature on the new notes. I hope, Mr. Cudjo, would be mindful of his position and guided by making intelligent and informed public discourses with decorum.
The Governor put up reasons to introduce the new notes.Unfotunately on this platform not one has countered the Governor.We are seeing only insults and subjective predictions.Lets remind people that currency management is a technical field that requires deep knowledge to comprehend.
w.i.c.k.e.d government
Please stop talking ***barred word***. Why are you politicians always wasting our monies like this? we don't like it.
THIS GOVERNMENT ACTS BEFORE THEY THINK. FEW DAYS AGO THE VICE PRESIDENT, MAHANADU BAMUWULIAR SAID GHANA WAS MOVING TO THE REALMS OF A CASHLESS SOCIETY IN 2020. IF SO WHAT IS THE NEED TO FURTHER INTRODUCE BIGGER DENOMINATIONS (CURRENCIES) TO MAKE COST OF LEAVING MORE UNBEARABLE TO YOUR CITIZENS. I AM BEGINNING TO FEEL IT IS BECAUSE THE GOVENMENT IS AWARE THEY HAVE LOST THE 2020 ELECTIONS IN ADVANCE AND THEREFORE THIS IS THE ONLY MEANS OR WAY TO STUFF THEIR INDIVIDUAL ACCOUNTS OUTSIDE GHANA BEFORE THEY LEAVE OFFICE. OR ELSE I CAN'T SEE THROUGH ANY REASONS FOR THE INTRODUCTION OF THESE CURRENCIES.
Why is it that only NPP government changes our currency? They are doing this getting close to the election. Just trying to steal from the nation for their political activities come next year. God is watching.
***barred word*** God will punish u all
Instead of fighting to bring the rate down you creating more problems The raising the currency automatically leads to high prices of commodity .OH Ghana or are they putting money into the system ?
this is a bad policy, this will automatically cause a depreciation of the cedi and very soon the cedi will be like the naira where you will need several thousands of naira to buy food. i think the government should stop this policy if it can. it is a bad policy