GH¢306m on printing cedis in 2019

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A massive total Gh306 million had been spent by the Ghana’s Central Bank to print the new cedis notes; the Gh100 and Gh200 Cedis.  This is a jump from Gh147 spent in 2018; the new amount represents a 108%.

The BOG annual report in 2019, shows that there are some Gh276Million and Gh149Million of the Gh 200 and Gh 100 million notes in circulation respectively.

The value of denomination in circulation, Gh50 Cedis notes happen to be more in circulation than other denomination, and over Gh5.9 billion worth of the Gh 50Cedis  are presently available to the public this is followed by Gh20 Cedis denomination which has just less than Gh 5 billion.

November 2019 when the new denomination was introduced, the introduction caused an uproar due to issues on the cost of printing them and its usefulness at a time when the Ghana Cedis was struggling against the United States dollar ($).

US$9million was used in the printing of the new denomination by Finance Minister Ken Ofori –Atta, other arguments were that it will fuel inflation.

The BOG Governor Dr Ernest Addison, defended the move, stating the need for the new denomination notes because, Gh50 and Gh20 Cedis notes account for almost 70% of total demand.  Commenting on whether it defeats government’s agenda of promoting a cash lite economy, the governor said his outfit, though committed to that agenda, still recognises that the informal structure of the economy still makes cash a preferred means of transacting businesses, hence, the introduction of the higher denomination notes.

The introduction of these high-value notes should not be misinterpreted to mean a shift away from the Central Banks 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. This is why we continue to pay attention to enhancements in the structure, security features and management of cash within the economy.

The introduction of these high-value notes should not be misinterpreted to mean a shift away from the Central Banks 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. This is why we continue to pay attention to enhancements in the structure, security features and management of cash within the economy.

 

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