New Denomination Out

400 billion cedis new notes go into circulation

The Bank of Ghana (BoG) on Monday put more than 400 billion cedis of the new 10,000 and 20,000 cedi notes into circulation. The new notes will circulate alongside the old 5,000, 2,000 and 1,000 cedis notes already in the system.

Explaining the rationale behind the introduction of the new notes, Mr Edward Ofei-Bekoe, Head of Issue of the Central Bank said, the new notes would not lead to inflation as it was being speculated.

He said, "it will, rather reduce the total volume of cash that is carried around for business transactions."

He said usually commercial banks deposit specific amounts with the central bank, which they withdraw at one time, or the other and it was this same amount that was given back to them when they requested for it.

"The total amount does not increase in anyway and will neither increase even with this new introduction because the commercial banks cannot withdraw above what they have deposited."

Mr Ofei-Bekoe said BOG ensured strict control of the total amount of money in circulation in order not to create any imbalance in the system that might trigger inflationary pressures.

He noted that the currency in circulation or in trust for the commercial banks were also fished for old, mutilated and non-usable notes of which the new notes would replace over time.

The Bank of Ghana spends about three billion cedis a month to replace bank notes that are mutilated by poor handling practices. From January to August this year, the bank destroyed 128.9 million mutilated notes of various denominations, the equivalent of 244.3 billion cedis.

Nine million bank notes, which have been in circulation for up to six months or a year, are withdrawn every month as a result of mutilation.

On the durability of the cedi notes, Mr Ofei-Bekoe said the quality was guaranteed and there was virtually no possibility of counterfeit.

He said, the new notes, like the ones already in circulation have "intaglio" printing features, explaining; "this makes the colour stick when it is rubbed on paper".

Mr Ofei-Bekoe asked the public to relax and have confidence in the Bank since notes and currency in general go through a lot of processes before it is issued.

The BoG under Kwame Nkrumah's administration first issued its 10 Shilling and One and Five Pounds notes between 1958 and 1962.

In 1965 the Central Bank issued the first ever cedi notes - New One and Five Cedi notes followed by the 10 Cedi note. The first 50 and 100 cedis notes were introduced in 1965.

A 1000-cedi note was also issued in 1965.

In 1967, after the overthrow of Dr Nkrumah, the BoG introduced another One, Five and 10 Cedi-notes. Later another denomination of One, Two and Five, 10 Cedis were issued from 1972 to 1973.

In 1979, before the PNDC took office, a new batch of One, Two, Five, 10, 20 and 50 Cedi notes were circulated.

Between 1983 and 1991 under the PNDC and NDC administration, the BoG again put new 10, 20, 50, 100, 200, 500, 1000, 2000 and 5,000 notes into the system.

Coins were also introduced alongside the notes over the years.