Ghana introduces new denomination of bank notes

Ghanaians have been surprised by the announcement that the central bank is introducing new higher denomination note.The central bank of Ghana announed this new change.

@thebankofghana
We have introduced new higher-denomination banknotes and coins into circulation. Know the Cedi and Keep it Clean #KCKC. This has been the topic of discussion in every Ghanaians mouth.

The new 200 Ghana cedi ($36; £28) and 100 Ghana cedi notes, as well as a two Ghana cedi coin, will be released from next week.

Central bank officials say the new notes will make it more convenient for people to pay for expensive items.

But they are also a sign of inflation and the devaluation of the currency.

The Ghana cedi was introduced in 2007, when the bank removed four zeroes from the currency. In other words, 10,000 cedis became one Ghana cedi.

At the time one Ghana cedi was worth $1, now it is worth just $0.18. Until now, the highest-value note available was the 50 Ghana cedi note, which is worth $9.

Central bank governor Ernest Addison said: “A lot of thinking went into the decision to introduce the higher-denomination banknotes.”

But the move has been criticised by some Ghanaians who feel that the new notes could encourage traders to raise their prices.

The central bank is, however, optimistic that the structure of the new banknotes should meet the needs of people who use a lot of cash for their daily transactions.

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