Bank of Ghana (BoG) has said that the decision to introduce the GH¢100 and GH¢200 new currency notes form part of its reform programme.
This, according to the central bank, is aimed at making the cedi relevant to changing times.
It said 12 years after of the redenomination of the cedi, high inflation and depreciation of the currency have eroded, in real terms, the face value of the existing series of banknotes, which means that people have to carry large sums of money for economic transactions.
This phenomenon, the bank explained, does not only burden people but poses a security threat to those carrying them.
Bank of Ghana said this in a statement after its attention was drawn to reports describing the introduction of new higher Ghana cedi denomination banknotes as an ‘ambush’.
“As is the normal practice in all jurisdictions, central banks undertake periodic reviews of the structure of existing currencies,” the BoG said in the statement.
“The Bank would like to inform the general public that the introduction of the new denominations is the result of a well-thought-out currency reform programme,” it added.
Explaining further, BoG said international best practices require monetary authorities to review their currency regimes at intervals between five and 10 years, ensure that demand for banknotes are well aligned with economic activity, address weaknesses and challenges noted in the management of notes and coins in circulation, assess the non-usage of a particular series to ensure efficiency in printing, and address technological innovations that improve security features of the currencies.
“These are technical decisions taken by the Central Bank as part of its mandate. Indeed, Ghana maintains a very strict clean note policy, making our currency the cleanest across the West African sub-region. This is because, since redenomination, we have put into place a modern and world-class currency management and processing systems to meet the country’s currency needs,” the statement said.