GHC1 and GHC2 notes to be phased out soon – BOG

The Bank of Ghana (BOG) has disclosed that the GHC1 and GHC2 notes will be cleared off the system soon.

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According to the BOG, this is due to the fact that they are not cost effective in terms of printing and they will be replaced by coins.

This was announced by the BOG Governor Dr. Ernest Addison meeting of the Monetary Policy Committee (MPC) on Monday 27 September.

“[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 …” Dr. Addison said.

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.”

Dr Addison added: “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.”

The BOG also the Ghanaian economy grew by just 0.4% last year - its slowest rate since 1983. But it has gained ground in 2021, expanding 3.1% in the first quarter and 3.9% in the second.

The bank's Monetary Policy Committee said Ghana's overall economic outlook will continue on an upward trajectory despite inflation having risen for a fourth month in a row in August.

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