The Central Bank’s decision to introduce new notes for GHC100, GHC200 and the GHC2 coin has been criticized by some economists and policy think tanks.
Demand by Ghanaians for higher currency denomination as well as a government strategy to reduce debt has accounted for the introduction of new currency denominations, according to the Bank of Ghana.
At a sensitization program for Rural and Universal bank workers on the security features of the new denominations in the Upper East Regional capital, Bolgatanga, Assistant Director and member of the Bank Note Educational Committee at the Bank of Ghana, Eric Kwaku Harmony explained the move further.
“If I talk about the volume of money that one has to carry in order to do a transaction over the year, it has become burdensome. So with these higher denominations, we have introduced, it will ease the burden and make it easier for businessmen to do economic transactions. Over the years, the currency management department has also conducted research that showed that there has been a shift in the demand for the high banknotes that is why the central bank went ahead to introduce these new banknotes into circulation.”
Former, John Mahama had said the BoG did not go through the right procedure to introduce the new banknotes and that the decision was flawed.
But the Bank of Ghana in a statement on Friday, January 3, 2020, said contrary to John Mahama’s claims, it indeed “went through standard processes to introduce the new denominations with integrity as it is to be expected.”
“The features of the new notes were unveiled at the launch. This is to avoid counterfeiters and other challenges associated with the issuance…Immediately after the launch, the Bank embarked on intensive public education which is still ongoing to ensure the effective dissemination and use of the new coin and banknotes,” the statement added.
Next NDC gov’t will probe introduction of new cedi notes – Minority
The National Democratic Congress (NDC) has said it will investigate the issue of the new notes should it return to power.
According to the Minority caucus in parliament, the Bank of Ghana has not been able to give tangible reasons for the introduction of the new denomination.
“The Minority wishes to reiterate the point made by the Minority Leader that, the introduction of the higher value notes would be thoroughly investigated by the next NDC government,” Cassiel Ato Forson, the Member of Parliament for Ajumako Enyam Essiam constituency said in a statement issued on behalf of the Minority on Monday, January 6, 2020