Don't worry about cedi re-denomination

Kumasi, April 1, GNA - Mr Edward Nti-Berko, Kumasi Metropolitan Director of the National Commission for Civic Education (NCCE), has stated that there was no need for the public to worry about the re-denomination of the cedi.

He explained that the old currency would be in circulation alongside the new Ghana cedi and pesewa for a period of six months from July 1 to the end of December 2007.

Addressing over 1,800 pupils of Saint Anne's Anglican public and private junior secondary schools in Kumasi at the weekend on the exercise, he said even after the transitional period, people who would still have old currencies could change them at the banks or have them deposited in their accounts on the same value.

Mr Nti-Berko said the current notes regime played a significant burden on the economy in terms of transaction costs, strain on the payments system, especially with the Automated Teller Machines, difficulties in maintaining book keeping and statistical records and general inconveniences and high risks of carrying loads of currency. The NCCE Director indicated that the re-denomination exercise would involve the removal of four zeros from the existing denominations of the cedi and the rational was to simplify the accounting systems and reduce the difficulty of expressing monetary values.

He explained the conversion from the old currency to the new one to the pupils and told them to endeavour to explain the concept to their parents and those who approached them for explanation. Mr Nti-Berko stressed that from May 1; all stakeholders would have to display and quote prices in change, fines, taxes and tariffs in both the old and new cedis for easy transactions.

He said because of inflation, people had refused to accept the old 50 cedi coins but when the new Ghana cedi comes into operation people would appreciate its value, adding that the new cedis would have more coins than paper notes.

He advised the public, especially the youth to adopt the culture of savings pointing out that the Bank of Ghana (BoG) was going to introduce zero system of savings where people who did not have money could open accounts and later make deposits.

He also stressed the need for people to keep and maintain the money in proper conditions so that it could last and have its intrinsic features and also save the government from spending money to print new notes to replace destroyed ones.

He announced that the Commission has held similar education campaigns at Sokoban, interacted with law students of the Kwame Nkrumah University of Science and Technology (KNUST), members of the Seventh-Day Adventist (SDA) Church at Ashanti New Town and the Methodist Church at Suame. 01 April 07