In a statement signed by the Chief Executive Officer of GITFIC, Mr Selassi Koffi Ackom, GITFIC noted that the Bank of Ghana, as a regulator, has every right to take such actions, so, they fully support the decision. As such, GITFIC has also called on the public to handle the two and one cedi coins well to avoid frequent expenditure on its replacement.
“We, at GITFiC, are of the view that the regulator has every right, with her decision to fade out the circulation of the GH¢1.00 and GH¢2.00 notes. While the regulator has the ascendancy to take such actions in the interest of a conducive monetary environment in Ghana.”GITFIC
The statement further noted that, under the Governorship of His Excellency, the Late Paa Kwesi Amissah Arthur, in the erstwhile Atta Mills Administration, on June 14, 2010, the GH¢2.00 note was commissioned for circulation as a commemorative note, that is the Centenary of the Birth of Osagyefo Dr. Kwame Nkrumah.
GITFiC explained that, one of the critical reasons the GH¢2.00 note came into circulation was due to the issue of change. “Let us not forget that Ghana’s economy is predominantly driven by Micro Small and Medium Enterprises (MSMEs).” It further noted that the issue of balancing after buying/selling is a major issue affecting the day-to-day transaction of the Micro, Small and Medium Enterprises (MSMEs) of Ghana’s economy then and now. For instance, if a buyer purchased an item of GH¢1.00 using the GH¢5.00 note, a change of GH¢4.00 would be given to the buyer in four GH¢1.00 denominations.
“To bridge this difficulty is what appraised the printing and circulation of the GH¢2.00 note, which was partly for commemorative purposes as verbalized above. These were the fundamentals that had divulged the printing of the GH¢2.00 note under the administration of former President, John Fiifi Atta Mills.”GITFIC
The statement emphasized the commemorative aspect of the GH¢2.00 note had long ended and as Ghana’s economy is expanding, and projected to expand more in post COVID-19 era, the decision to revise the printing and circulation of such lower denominations is in the right direction. GITFiC also claimed that two and one cedi notes pose risks to businessmen carrying larger amounts.
“A bulky GH¢5,000.00 in GH¢1.00 or GH¢2.00 denominations attract much risk than a GH¢5,000.00 in GH¢5.00 or GH¢200.00 denominations.”GITFIC
The statement further pointed out that the cost of printing and circulating such lower denominations is detrimental to Ghana’s economy in terms printing and regular replacement.
“Phasing out does not mean the GH¢1.00 and GH¢2.00 denomination will be banned from being used. This is not economic theory; it simply means, it is getting replaced by its coins equivalent in quantity for accessibility to all.”GITFIC
However, the statement urged the BoG to use the GH¢5.00 note for the portrait of Osagyefo Dr. Kwame Nkrumah to avoid political criticisms.