We’ve no immediate plans to withdraw 1 pesewa-BoG

The Bank of Ghana has announced it has no immediate plans to withdraw the 1 Ghana pesewa as a legal tender.

This came to light after the central bank introduced the new GHc100 and GHc200 cedi notes as well as the GHc2 cedi coin today [Friday].

Some Ghanaians have do not accept the pesewa coin as a legal tender since it was introduced.

Apart from the banking sector and a few other businesses using them for their day to day transactions, the legal tender has been rejected by the public.

The BoG says the pesewa, as well as the GHc1 and GHc2 notes, are still a legal tender.

Meanwhile, the BoG says the ”introduction of the higher value denominations in circulation is therefore necessary to ensure customer convenience, reduction in the costs of printing and other currency management processes.”

The bank also has explained that the introduction of the new notes is aimed at: ” Ensuring customer convenience; reducing high transaction cost; efficiency in high-value transactions in cash; and reduces the cost of printing as well as currency management including processing, transporting, and storing banknotes.”

In answering the question of whether the new notes will lead to inflation the BoG said: ”…Higher denomination is introduced to only ease high transaction volumes. These notes will only replace some of the large cash transactions done with the existing GH¢50 and GH¢20 banknotes. Again, the value of currency depends on what you can buy with it, rather than what the face value is. Bank of Ghana will remain committed to preserving the purchasing power of the currency.”

By: Rashid Obodai Provencal