BoG to phase out GH¢1 and GH¢2 notes

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Dr. Ernest Addison, the Governor of the Bank of Ghana, has indicated that the GHC 1 and GHC 2 commemorative notes will be phased out of circulation soon.

On Monday, September 27th, he mentioned this at the 102nd Monetary Policy Committee (MPC) press conference in Accra.

Dr Addison said: “Both the GHC1 note and the GHC2 note would eventually be phased out because they are not cost-effective in terms of the printing cost.

“[These are] notes that circulate very widely, and they come back very torn and soiled and they are very difficult for our currency processing machines to process …”

He added, “We have bales and bales of GHC1 notes that we are not able to process. So the view for the longer term is to more or less get out of the GHC1 and GHC2 notes and use the GHC1 and GHC2 coins. You will recall that this is a note [GHC2] that was issued as a commemorative note …

Commemorative notes are not notes that you continue to print.

“And, therefore, what we have done in the last two years is to introduce the GHC2 coin. You would expect that, eventually, it would more or less play the role that the GHC2 note is playing

In terms of the local currency’s performance, he stated that the Ghana Cedi has done well, with a year-to-date depreciation of 1.8 percent.

Foreign investor behavior has not changed as a result of the country’s greater sovereign spread, as net monthly purchases of securities on both the debt and equities markets remain generally favorable.

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