Bank of Ghana Issues Caution Against Rejection of Coin Currency

The Bank of Ghana (BoG) has issued a firm warning to the public and businesses across the country to stop rejecting coins as legal tender. The Central Bank cautions that such behaviour threatens the nation’s price stability and could have damaging effects on the broader economy.

Recently, the Bank has observed a concerning trend where many people refuse to accept smaller coin denominations, especially the 10 and 20 pesewa pieces, when these are given as change during everyday transactions. This rejection, officials stress, undermines the country’s currency system and disrupts the proper functioning of commerce.

Speaking on Monday, July 14, during the opening ceremony of a workshop on currency management and forecasting organised by the West African Institute for Financial and Economic Management (WAIFEM), Dominic Owusu, Head of Currency Management at BoG, called on the public to respect all forms of Ghanaian currency. He emphasised that every banknote and coin issued by the Bank of Ghana is legal tender and must be accepted in all transactions without exception.

“There is absolutely no justification for rejecting any currency legally issued by the Central Bank,” Owusu stated. “I urge everyone—whether you are consumers, retailers, or service providers—to accept all denominations, including one pesewa, five pesewas, ten pesewas, twenty pesewas, fifty pesewas, one cedi, two cedis, and even the two Ghana cedi coin. All these are official legal tender and must be honoured.”

The Crucial Role of Coins in the Economy

Owusu highlighted the significant role coins play in maintaining price stability across the economy. He explained that when coins are not accepted, traders often resort to rounding prices to the nearest note denomination. This seemingly minor adjustment, when widespread, can create inflationary pressure over time, ultimately affecting consumers’ purchasing power.

“When coins disappear from circulation, vendors round prices up because they cannot give exact change. This leads to small but persistent increases in prices, which gradually fuel inflation—something that the Central Bank is committed to managing and preventing,” he said.

In addition to supporting price stability, coins provide economic benefits through their durability. Unlike banknotes, coins have a longer lifespan and stay in circulation for years without needing frequent replacement. This durability reduces the costs the Bank of Ghana must bear in printing and distributing currency.

“Coins are more cost-effective than notes because they last longer. Rejecting coins forces the Bank to print more notes more often, increasing costs for the economy as a whole,” Owusu added.

He urged everyone to embrace the use of coins and respect their legal status to support a stable, efficient currency system.

“Please accept the coins issued by the Bank of Ghana. No coin should be refused. Doing so is not only unlawful but harms the country’s economic health,” he said emphatically.

Advancing Currency Management with Technology

The warning came during the launch of a WAIFEM workshop focused on improving currency management and forecasting across West Africa. The event brought together financial experts, central bankers, and economists from the region to discuss innovations and challenges in currency oversight.

Dr. Christian Ahortor, Director of Research and Macroeconomic Management at WAIFEM, revealed that the workshop would cover advanced topics including the use of artificial intelligence and machine learning for fraud detection, emerging trends in digital currencies, and how big data analytics can enhance currency forecasting.

“As the financial landscape evolves, currency managers must adopt new technologies to ensure efficient and secure currency operations,” Dr. Ahortor said.