Finance

What you need to know about new GH¢100, GH¢200 banknotes, GH¢2 coin

The Bank of Ghana on Friday November 29, 2019, introduced two new high denominations.

They are the GH¢ 100 and GH¢ 200 Banknotes.

The Central Bank also introduced a new GH¢ 2 coin.

Why The New Notes?

According to the Central Bank, high levels of inflation currency depreciation in the past have eroded some of the gains from redenomination.

It says the deadweight burden, reflected in high transaction cost has re-emerged.

This set of higher denominations will address this increased transaction cost, especially in high-valued transactions in a cash based economy.

It added that also the structure of the Banknotes denomination has changed resulting in a shift in demand for higher denominations (GH¢50 and GH¢ 20 account for about 70? of the total demand), reflecting the expansion in income and prices.

“The introduction of the higher value denominations in circulation are therefore necessary to ensure customer convenience, reduction in the costs of printing and other currency management processes,” the Bank stated.

Benefits of introducing the higher denominations

According to the Bank, ensuring customer convenience, reducing high transaction cost; efficiency in high value transactions in cash; reduction of cost of printing as well as currency management including processing, transporting, and storing banknotes, are some of the benefits that come with the introduction of the new notes.

Will The Higher Denomination Banknotes Lead To higher inflation?

The Bank indicated that the introduction of the new notes will not lead to higher inflation.

It says 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,” it explained, adding that “again, the value of currency depends on what you buy with it, rather than what the face value is.

Will the new denomination banknotes be a transaction note?

According to the Central Bank, the GH¢100 will complement the existing high denomination banknotes to ease high value transaction.

It says the GH¢ 200 banknote will be introduced gradually into circulation and will be in limited quantities.

Why has BoG Introduced GH¢2 Coins?

The Bank says it intends to gradually replace its lower banknotes denominations with coins to reduce its costs of printing.

It says it will also embark on a vigorous campaign among road transport workers, market operators, small businesses, supermarkets, vendors and others to create avenues for the usage of the coins including develop infrastructures for coin usage.

There will be a nationwide educational campaign focused on the security features, proper handling of banknotes and promote usage of coins, according to the bank.

 

Source: dailyguidenetwork.com

Ogyem Solomon

Solomon Ogyem – Media Entrepreneur | Journalist | Brand Ambassador Solomon Ogyem is a dynamic Ghanaian journalist and media entrepreneur currently based in South Africa. With a solid foundation in journalism, Solomon is a graduate of the OTEC School of Journalism and Communication Studies in Ghana and Oxbridge Academy in South Africa. He began his career as a reporter at OTEC 102.9 MHz in Kumasi, where he honed his skills in news reporting, community storytelling, and radio broadcasting. His passion for storytelling and dedication to the media industry led him to establish Press MltiMedia Company in South Africa—a growing platform committed to authentic African narratives and multimedia journalism. Solomon is the founder and owner of Thepressradio.com, a news portal focused on delivering credible, timely, and engaging stories across Ghana and Africa. He also owns Press Global Tickets, a service-driven venture in the travel and logistics space, providing reliable ticketing services. He previously owned two notable websites—Ghanaweb.mobi and ShowbizAfrica.net—both of which contributed to entertainment and socio-political discussions within Ghana’s digital space. With a diverse background in media, digital journalism, and business, Solomon Ogyem is dedicated to telling impactful African stories, empowering youth through media, and building cross-continental media partnerships.

Related Articles

Back to top button