BoG reveals GH¢1 and GH¢2 notes to be phased out soon

Accra, GHANA: A woman holds 03 July 2007 in Accra a wad new currency, the new cedi, that Ghana put in circulation that day, although the old money will still be valid until the end of the year. Currently, the cedi is one of the least valued currencies in Africa: 9000 cedis equal one US dollar. Ernest Addison, head of research at the Bank of Ghana, assured in November 2006 that the changeover was not a revaluation nor devaluation, and will not affect foreign exchange. AFP PHOTO / ISSOUF SANOGO (Photo credit should read ISSOUF SANOGO/AFP/Getty Images)

Bank of Ghana Governor, Dr Ernest Addison, has disclosed that very soon, the central bank will cease the circulation of GH¢1 and GH¢2 notes.

He noted that printing the afore-mentioned notes are not cost-effective, and most times, receive them soiled and torn.

Also, the currency processing machines are unable to process these weak notes.

Dr Ernest Addison, therefore, noted that the GH¢1 and GH¢2 notes will be replaced with their respective coins.

He made this known at a press conference in Accra on Monday, September 27, 2021.

The BoG Governor said, “Both the GH¢1 note and the GH¢2 note would eventually be phased out because they are not cost-effective in terms of the printing cost…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 them.”

“We have bales and bales of GH¢1 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 GH¢1 and GH¢2 coins.”

“You will recall that this is a note [GH¢2] that was issued as a commemorative note. So commemorative notes are not notes that you continue to print and therefore what we have done in the last two years, is to introduce the GH¢2 coin and you would expect that eventually, it would more or less play the role that the GH¢2 note is playing,” he explained.

At the 102nd monetary policy rate meeting, Dr Ernest Addison announced that the policy rate remains 13.5%.

He cited the high inflation rate as the major reason for the MPC’s decision to not change the policy rate.