Introduction of new notes will benefit criminals & the corrupt-NDC MP

The Member of Parliament for Tamale Central Inusah Fuseini has supported claims that the introduction of the new GHc100 and GHc200 cedi notes will benefit criminals.

The legislator says the new denominations will worsen the inability of the country to deal with unscrupulous people who tackle advantage of the system, to perpetrate crime.

He indicated on Frontline on Rainbow Radio 87.5Fm that the new denominations.

He said the reason why we have not been able to fight corruption is because of the many denominations in circulation.

He further suggested the new notes will worsen inflation.

He quizzed the rationale behind the idea adding, ”did they introduce the money because we are going into an election year?”

Founder of Policy think tank IMANI Africa Mr. Fraklin Cudjoe has argued that the introduction of the notes will be helpful to criminals ( terrorists, money launderers, human traffickers- The Economist, May 7, 2016) who can easily hide stolen money.

He wrote: ”Just another example to make nonsense of our hard-working Veep’s electronic initiatives. The BoG should focus its energy on preventing the odious tax consideration on mobile money, which by far is the single most important developing world revolution in driving a cashless society, instead of being happy to have left a legacy of large banknotes, even if the beautiful signature of its leader on these notes is the sole reason for introducing them.”

Referring to the position taken by the IMANI boss, he said I agree with him because this is an avenue for crime to thrive.

The Bank of Ghana has introduced GH¢100 and GH¢200 notes as additions to the country’s currency denomination mix. The Central Bank has also introduced a GHC2 coin. This was announced by the Governor of the Central Bank, Dr. Ernest Addison at a press conference in Accra on Friday.

A lot thinking went into it

Dr Addison said “a lot of thinking went into the decision to introduce the higher denomination banknotes. The structure of the banknote should align well with the needs of the people who use it for their daily transactions. We need banknotes and coins that are convenient for most people to use, high quality, secure and cost effective.”

“Accordingly, in March 2017, the Bank of Ghana begun a process of conducting a thorough review of the structure of the currency including on the note/coin boundary and acceptability and use of the individual currency series. The review exercise which involved conducting a nationwide survey with market operatives, businesses and international stakeholders as well as some empirical exercise. The outcome of these exercise revealed the resurgence of deadweight burden issues on the economy due to past significant inflation and perennial depreciation of the currency, significant increase in the demand for higher denomination banknote and increased cost of printing.”

By: Rashid Obodai Provencal

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