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The idea and the rationale behind the Bank of Ghana for phasing out the 1 and 2 cedi notes made in a statement by the Governor of BOG is an abracadabra and absurd statement. It does not clearly define or reflect the purpose unless the BoG has a clandestine program against such names. The plan is irrational and I regard this attempt as extremely absurd, a blunder and an unfortunate situation that would derail our economy and raise inflation. It must be a childhood story and not a reality in the making.
The governor of BOG was located
Addressing a press conference after the MPC meeting on Monday (September 27), Bank of Ghana Governor Dr Ernest Addison said of the cost of printing.
“Notes that go around very widely and come back very torn and dirty and it’s very difficult for our currency processing machines to process them.”
He added: “We have GHC1 note bullets and bullets that we are not able to process. The longer-term vision is therefore to move out more or less of the GHC1 and GHC2 banknotes and to use the GHC1 and GHC2 coins.
Dr Addison added that “You will recall that this is a note [GHC2] which was issued as a commemorative note. So commemorative tickets are not tickets that you keep printing and so what we have done for the last couple of years is to introduce the GHC2 coin and you would expect that eventually it will play. more or less the role played by the note GHC2. . ”
If the above statement made by the governor is true, the 1 and 2 cedi coins are also not profitable for the following reasons; Coins are more likely to be lost. Many people in the space of business, and commerce in general, cannot account for these coins that they receive in day-to-day transactions.
Some parts are crushed in corn mills causing the parts to warp and some mistakenly drown in bodies of water. Some parts bounce off hard surfaces and get lost immediately and some get corroded beyond buyout and therefore BOG would have to incur more costs to reprint, process and replace them, making the parts also unprofitable.
One can feel the difficulty and impossibility of carrying these coins worth only 50 cedis in a purse or pocket and your purse or pocket is heavy and almost torn, which makes its handling and its very stressful traffic.
To avoid the inflation which is already on the flying machines, it is prudent to educate Ghanaians on money management rather than phasing out banknotes and increasing hardship for Ghanaians due to high inflation that this is likely to impose on products and the cost of living.
The Ghanaians devalue the coins so that the BOG stock is likely to depreciate the cedi and decrease the 1 and 2 cedi coins as happened with the 1 and 5 pesewas and caused the fees and other goods to ‘a value of 1 and 5 pesewas amounts to 10, 20 and 50 pesewas respectively. . The 1 and 2 cedi coins already are not considered in commerce, in our markets and shopping centers and the 1 and 5 pesewas are a good case study of the story.
Do we know that whenever there is a dynamic in our currency denominations or a new currency is introduced, a new inflation is also introduced. A typical example is when this current currency was introduced in 2007 to replace the 1000 to 10p note, 2000 to 20p and so on. This happened right after the cedi held the dollar for only a year in 2007 and they told us “the value is the same”. but inflation and other shocks heavily infected the economy and automatically changed commodity prices. It was the result of economic mismanagement and policies to introduce currency.
If 1 and 2 cedi banknotes are circulating and returned soiled and torn, why can’t BoG change the materials used to produce our cedi banknotes by initiating high quality materials rather than lower quality paper. This would extend the life of the cedi banknotes in circulation by making them durable. It would also reduce the extent of stains and the rate at which cedi banknotes are damaged. The BoG should do this and protect the country, especially the vulnerable masses, from inflationary attacks and the high cost of living.
BoG can do better!
Article by fighter Anthony AKudago
Ghana Economic Freedom Fighters (EFF-GH)
E-mail [email protected]
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