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Opinions of Friday, 24 September 2010

Columnist: Adu-Lartey, Ebenezer Kofi

The Importance Of Introducing New Two (2) Ghana Pesewas Coin

Ghana’s economy in recent times has been facing a number of currency denomination problems. In July 2007, Ghana’s government introduced a new currency denomination to replace the old denomination because of its short falls. The introduction of the new currency denomination was very good in terms of its durability, size, and texture compared to the bulky nature of the old currency denominations. Despite, its advantages, the introduction of the new currency denomination had some limitations.
The introduction of the new currency denomination caused problems in pricing of goods and services. For instances, in recent times, when there was an increase in the transport fares, it was very difficult for operator of GPRTU and the drivers unions to accurately determine transport fare rates, due to the fact that the increase was in percentage ratio to the existing fares. As a result of their inability to come up with an accurate transport fares, the differences in increase were passed on to the final consumer (i.e. the passenger) thus compounding the increase to other goods and services.
Furthermore, in February this year 2010, the domestic utility provider and the satchet water producers proposed an increased in their product and services. The pricing of these goods and services was very problematic between the public utility regulatory body and the domestic utility providers and the satchet water producers in finding an appropriate and accurate pricing for the products and services. This is as a result of the poor currency denominations in circulation.
The bulky nature and other features of the old currency denomination. For instance, the use of the one (1) Ghana pesewa coin is very problematic because of its size, fading texture, and bulky nature .As a result, Ghanaians have abandoned its use and thus causing inflationary problems in Ghana‘s economy.
The new currency denomination is clearly contributing to the cause of inflation in Ghana‘s economy. For instance, the pricing of smaller goods and services using the new currency denomination is not easy and it is contributing to the causes of inflation in the economy.
I will strongly recommend that, there is need for a reintroduction of a more detailed currency denomination to alleviate issues such as pricing of transportation fares and other utilities. I hope Ghana’s government and its advisory bodies will take necessary action to address the above issues concerning the current currency denominations.

By:Freelance Writer Ebenezer Kofi Adu-Lartey.