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31.12.2007 Business & Finance

No Deadline For Currency Exchange-BOG

By Daily Guide
No Deadline For Currency Exchange-BOG

The Bank of Ghana says there is no time-limit for the exchange of the old currency for the new, allaying fears in the public that the two cannot be exchanged after December 31, 2007.

According to Head of Research of the Central Bank, Dr. Ernest Addison, even though the old currency will cease to be legal tender on January 1, 2008, there is no deadline for exchanging the old currency for the new.

Though from January 1st, 2008, the old currency cannot be used, the Central Bank says the currency can be exchanged at all commercial banks, savings and loans companies as well as rural banks when the deadline elapses.

Media reports have indicated that some establishments are rejecting trading in the old currency, insisting that it is no longer legal tender.

But Dr. Addison told CITY & BUSINESS GUIDE that the old currency can be exchanged at any bank, be it commercial or rural.

With almost a day to go for the old currency to cease to be in circulation, CITY & BUSINESS GUIDE gathers that some traders and drivers' mates have resorted to rejecting the old currency, saying the banks have refused to accept them.

The traders especially have been refusing to accept the old currency from buyers, with the explanation that they risk losing some money if they accept the old cedi.

Also, the number of old currencies, especially the coins in circulation, raises a lot of concern regarding whether the old currency can be withdrawn in earnest.

However, about 90.5 percent of the old currency as at the middle of December has been taken out of circulation.

This means that about ¢8.2 trillion have been withdrawn so far.
Before the introduction of the new Ghana cedi in July, there was about ¢9.24 trillion of the old currency in circulation.

The Bank of Ghana introduced the redenomination of the Ghana cedi in July this year giving a six-month grace period so as to allow the withdrawal of the old currency.By Charles Nixon Yeboah

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