The Bank Of Ghana has announced recently that, our 1Cedi and 2Cedis notes will now and no time be converted to coins in the near future.
According to BankOf Ghana, printing out metal coins is cheaper than paper notes hence this move will save the national purse and they also deem it a step in the right direction.
During a meeting with the Monetary Policy Committee, Governor Dr. Ernest Addison said;
These are] notes that circulate very widely, and they come back very torn and soiled and they are very difficult for our currency processing machines to process …
We have bales and bales of GHC1 notes that we are not able to process. So the view for the longer term is to more or less get out of the GHC1 and GHC2 notes and use the GHC1 and GHC2 coins.
You will recall that this is a note [GHC2] that was issued as a commemorative note … Commemorative notes do not note that you continue to print.
And, therefore, what we have done in the last two years is to introduce the GHC2 coin. You would expect that, eventually, it would more or less play the role that the GHC2 note is playing
According to the BOG, Ghana’s GDP increased by only 0.4 percent last year, the worst rate since 1983. In 2021, however, it has gained pace, with a growth of 3.1 percent in the first quarter and 3.9 percent in the second.
Despite inflation rising for the fourth month in a row in August, the bank’s Monetary Policy Committee predicted Ghana’s overall economic outlook will remain positive.