Accept Ghc200, Ghc100 Banknotes — BoG Urges Ghanaians

Business & Finance Accept Ghc200, Ghc100 Banknotes — BoG Urges Ghanaians
DEC 27, 2019 LISTEN

The Central Bank has encouraged businesses to accept the new 100 and 200 cedi notes as legal tender in their daily business transactions.

It follows a viral video in which a customer is allegedly turned away at a game shop when he brought out a 200 cedi note to pay for items purchased.

On November 29 this year, the Bank of Ghana announced that it had issued a new 200 and 100 Ghana cedi note which will be in circulation.

The Central Bank in addition introduced a new 2 cedi coin.

The Bank of Ghana among other things explained that the new cedi notes will be limited in supply as it will be used for only high valued transactions and will not be dispensed by ATMs but this caveat seems to have brought about challenges.

Tellers at some retail outlets have refused to accept the notes.

A customer, only known as Godwin in a viral video on social media recounted how he was turned away at the Game shop at the Achimota Retail Centre.

“I am paying for my items I bought from Game with 200 cedis, but the manager and tellers here say they are not going to accept the money which is a legal tender,” he said.

Following this, Citi Business News understands that the Head of Financial Stability at the Bank of Ghana, Dr. Joseph France, and the Head of Currency Management Department, John Gyamfi, have engaged the management of Stanbic Bank whose agent is alleged to have directed the rejection of the currency.

The officials have since advised all retail outlets to accept the 100 and 200 cedi notes as a legal tender at their various shops.

In an earlier justification for the introduction of the higher denominations, the Central Bank explained that the structure of banknotes denomination has changed, resulting in a shift in demand for higher denominations.

As such, the 50 and 20 cedi notes account for about 70% of the total demand, which also reflects the expansion in income and prices.

Again, the Central Bank maintains that the new higher denominations will help with customer convenience; efficiency in high-value transactions in cash; and reduce the cost of printing as well as currency management including processing, transporting, and storing banknotes.

Though some economists have predicted possible inflation due to the action, the Bank of Ghana has dismissed such claims saying that higher denominations are introduced to only ease high-volume transactions.