60% of old currency notes replaced - BoG

Accra, Aug. 25, GNA - The Bank of Ghana (BoG) on Monday said 60 per cent of the old currency had been withdrawn from circulation and replaced with the new currency.

Dr Paul Acquah, Governor of the Central Bank, answering questions from the media during a briefing of the Monetary Policy Committee (MPC) in Accra after its deliberations last week, said at the start of the exercise in July, about 9.1 trillion cedis was withdrawn and replaced with 5.45 trillion Ghana Cedis.

"This leaves an outstanding of about 3.6 trillion cedis yet to be replaced," he added.

It is expected that the outstanding old currency would be completely withdrawn by December, 2007, the date set for the end of the main redenomination exercise.

The BoG embarked on the redenomination exercise in July 2007 to reduce the burden of accounting and cutting the risk of carrying large sums of physical cash.

Dr Acquah also announced that the Central Bank had divested its interest in the Agricultural Development Bank (ADB) to the Financial Investment Trust, a body that takes into custody government shares for onward investment either to the public or a strategic investor. "Therefore in principle, the divestiture has taken place and the Central Bank has moved on with the process," he explained. He said the idea was to ensure that the BoG, as the regulator of the banking industry, was not seen as a player as well.

Dr Acquah said the issue of divestiture and/or acquisition of any Bank by another had to do with the services that the Bank had to offer. Asked what the response should be for the ADB situation, Dr Acquah said: "Whatever action would be taken should be done with the focus that the agricultural sector will be enhanced and the agricultural focus should be maintained in the Bank.

"Any bank or institution that buys into ADB and dilutes the original intent of the Bank should not be entertained. "Our main focus as a regulator is to ensure that a real financial industry is developed in the country. Any new Bank that comes into Ghana should be an internationally active Bank as a major criterion and we would consider a Bank with this kind of reputation."

Merchant Bank Ghana Limited, Robo Bank of Netherlands and Stanbic Bank of South Africa have expressed interest in taking up the 48 per cent shares that the BoG is disposing of in ADB. Dr Acquah said if the right thing was done within a competitive atmosphere shareholders would have value for money with guaranteed quality service.