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The Head of Finance at Merban Capital, Nelson Cudjoe Kuagbedzi, has urged the Bank of Ghana to intensify public education and enforcement efforts to encourage the circulation and acceptance of smaller cedi coins and banknotes.
Mr. Nelson Cudjoe Kuagbedzi made this assertion during the 60th anniversary celebration of the cedi, where he expressed concern over the increasing reluctance of vendors and consumers to accept lower-value denominations in day-to-day transactions.
According to him this trend has far-reaching economic consequences, including artificial price hikes for basic goods and services. He further disclosed that the refusal to accept smaller cedi denominations undermines public trust in the currency itself.
“One of the challenges confronting the usage of the cedi as a legal tender in Ghana has to do with the fact that both buyers and sellers do reject the lower-denominated currencies
“Now the effect of the rejection is that these lower-denominated values induce inflationary pressures, because basic goods become more expensive.”
“Anytime these currencies are rejected, prices shoot up for basic goods and this induces inflationary pressures. Again, the rejection of the lower denominated currencies also induces loss of confidence in the cedi as a legal tender.” He stated
He therefore urged the Bank of Ghana to embark on a nationwide campaign to educate and sensitize the public about the legal status and continued relevance of the lower denominations. He also called for strict enforcement measures to ensure compliance.
“So I think the Bank of Ghana needs to embark on aggressive education, sensitisation and conscientisation of the public to the fact that this lower denominated currency still remains a legal tender for the purposes of business transaction and anybody who refuses to accept this legal tender is actually going contrary to the laws of the land.”
Source: Elvisanokyenews.net
