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Business News of Friday, 29 November 2019

Source: Ghanaweb.com

We're not veering off cashless society policy - BoG

The issuance of new notes is not a shift away from pursuing a cashless society, that is according to the Bank of Ghana.

The Central Bank of Ghana, Friday November 29 introduced GH¢2 coins, GH¢100 and GH¢200 notes to ensure customer convenience and bring about efficiency in the printing of currency to generate savings for the country.

Addressing the press at the launch of the new notes, the Governor of the Bank of Ghana, Dr. Ernest Addison said: “the introduction of these high-value notes should not be misinterpreted to mean 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. This is why we continue to pay attention to enhancements in the structure, security features and management of cash within the economy. This will stay with us for some time,” he added.

The governor also revealed that his outfit will embark on a nationwide campaign to educate the general public on the new denominations. This he says, will facilitate the detection of fake currency notes. The Bank of Ghana in March 2017, begun a process of conducting a thorough review of the structure of the currency including the note/coin boundary and acceptability and use of the individual currency series.

Dr Addison said the review exercise involved conducting a nationwide survey with market operatives, businesses and international stakeholders as well as some empirical exercise.

“The outcome of these exercises revealed the resurgence of deadweight burden issues on the economy due to past significant inflation and perennial depreciation of the currency, significant increase in the demand for higher denomination banknotes and increased cost of printing.”