The Governor of the Bank of Ghana (BoG), Dr Ernest Addison has explained that the introduction of a new GH¢2 coin as well as GH¢100 and GH¢200 banknotes into circulation is to ensure customer convenience and bring about efficiency in the printing of currency to generate savings for the country.
Addressing a press briefing today in Accra, Mr Addison disclosed that new coin and notes were decided upon after a review of the structure, acceptability and use of the individual currency which begun in March 2017.
He said the review exercise revealed the resurgence of deadweight burden issues on the economy due to past significant inflation and perennial depreciation of the currency, a significant increase in the demand for higher denomination banknote and increased cost of printing.
“Today, in line with the results of the exercise, the Bank of Ghana is introducing a new GH¢2 coin, and GH¢100 and GH¢200 banknotes denominations into circulation to complement the existing series to ensure customer convenience and bring about efficiency in the printing of currency to generate savings for the country,” Dr Addison said.
“These new higher value denominations will only restore partially the dollar value of the higher denomination GH¢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”.
He maintained that the introduction of the high-value notes should not be misinterpreted as 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, we are also 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,” Dr Addison stressed.
Credit: Graphic Online
(BY: Kweku Zurek)