BoG introduces new denominations

The Bank of Ghana has introduced two higher-denomination cedi banknotes and a GHc 2 coin into circulation to complement the existing series.

This has become necessary to ensure customer convenience and bring about efficiency in the printing of currency to generate savings for the country.

At the launch of the new denominations, the Governor of the Central Bank, Dr. Ernest Addison said, “These new higher value denominations will only restore partially the dollar value of the higher denomination GHc 200 to about US$ 40, not quite close to levels in 2007, but high enough to significantly reduce the deadweight burden and high transaction cost in making high-valued purchases in a cash-based economy like Ghana.”

The Governor was quick to note that 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, Dr. Addison indicated that his outfit is 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 practice across most jurisdictions is that central banks do periodically undertake a review of the structure of their currencies with the view to making sure that they are aligned with macroeconomic conditions and demand.

International best practices requires monetary authorities to review their currency regimes at intervals of between five and ten years with the aim of ensuring that demand for banknotes are well aligned with economic activity, address weaknesses and challenges associated with the management of notes and coins in circulation, assess the non-usage of a particular series to ensure efficiency in printing, and address technological innovations that impact the usage of currencies.

In the coming days, the Bank will embark on a nationwide campaign to educate the general public on the new denominations.