BoG Must Look Into This Allegation

In November 2006 the Governor of the Bank of Ghana (BoG), Dr. Paul Acquah disclosed that Ghana was going to re-denominate her national currency, the cedi, by knocking out four zeros from the number of digits.

Dr. Acquah contended that the value of the currency was having negative effects on accounting and the banking industry as a whole. It was also making it impossible for the government to introduce certain taxes, such as the installation of parking machines to tax motorists.

The news was well received by Ghanaians, both home and abroad, especially the argument about the vending machines, since the developed world has adopted the system and is raking billions of dollars in revenue. It did not, therefore, come as a surprise when Ghanaians rushed to the banks, in droves, to acquire the currency when it was officially introduced in July last year.

Because of the excellent campaign messages designed by the BoG, Ghanaians did not find much difficulty in using both the old and the new currency together. As we write 91% of the old currency, according to the BoG, has been withdrawn from circulation leaving only 9% to retrieve.

The old cedi notes and coins beginning from January 1, this year, cease to be legal tender. We commend the BoG for the effective change-over, from the old currency to the current one.

The Chronicle, however, thinks that the BoG has a lot of work to do, in order to complete the whole cycle of change. Contrary to the much-published claim by the BoG, that Ghanaians could easily walk to any bank of their choice, to change the old currency after January 1, when it ceases to be legal tender, the banks appear not to be cooperating with the directive in practical terms.

Reports filtering in, from all corners of the country, indicate that the banks are insisting that until the holder of the old currency opens an account with them, they would not change the money. Though the banks are putting out public relation gimmicks that they are only advising holders of the old cedi notes and coins to open accounts, and deposit the money into them, and that they are not forcing them, the reality on the ground is contrary to the claim.

The Chronicle thinks that the attitude of the banks could undermine any future policy that would be introduced by the BoG, if the issue were not addressed immediately. Advising holders of the currency to open bank accounts and deposit the money into them is a good idea, since it would help to inculcate the saving habit in Ghanaians.

But our concern is the refusal of the banks to accept the money, if the customer turns down their advice. This surely runs contrary to the message, put in the public domain by the, BoG that Ghanaians can walk to any bank of their choice to change the old currency.

It is the hope of The Chronicle that the BoG would not be sitting in Accra and be listening to information they are being fed with by these commercial banks, but would rather move to the ground to ascertain the truth, or otherwise, of the allegation that the banks are rejecting the old currency. This is the only way they could get to the bottom of the matter and resolve it once and for all.