New Currency redenomination Wahala; where have we come from and where are we going as a Country?

Can Ghanaians trust the Central Bank under the leadership of Governor Ernest Addison and the Akufo Addo’s government any longer?

This question is premised on the background of the denial that came from Bank of Ghana in October 2018 when the new 100 cedi note popped up on social media platforms.

I remember the Head of Communication at the Bank of Ghana, Esi Hammond categorically dismissed that new 100 note and indicated that BoG had no such plans on the table. So the question now is, what has changed within the last one year to warrant the introduction of new Cedi notes?

How accountable is the BoG to the good people of Ghana? Isn’t this yet another attempt to create, loot and share as we saw in 2007?

Although, I am not an economist nor a banker or financial expert, I would like to do a layman’s (common sense) analysis on this issue.

First of all, I want to take fellow Ghanaians a bit down the memory lane.

For the purpose of this conversation, I am going to focus on the last 19-20 years thus between 2000 -2019.

In the year 2000, the highest Cedi note was the green 5000 cedi note. Apart from the 5000 Cedi note, there were other lower notes which included 2000, 1000, 500, 200, 100 Cedi notes and so on.

The green 5000 Cedi note was a big money and could buy so many things. It was not easy to get the 5000 Cedi note except for those who were earning reasonable salaries etc. I remember a friend and I had a wooden money box we used to save coins in at the time.

When a changed in government came after the 2000 general elections which President Kuffuor won after a run-off, President Kuffuor in 2002 introduced new 10,000 and 20,000 Cedi notes.

Now, imagine that between 2000 to 2002, our highest Cedi note jumped from 5,000 to 10,000 and 20,000 Cedi notes. This was like a dream.Five years later under President Kuffuor, around June 2007, Ghanaians were inundated with campaign adverts on radio, tv and print media citing 1001 reasons why there needed to be redenomination of our currency. Among the reasons cited included claims that the old Cedi notes were too bulky to carry to banks and market.Remember during this period (2007), the current Vice President Dr Bawumia ‘spearheaded’ that redenomination exercise as Deputy Governor of Bank of Ghana at the time.The […]

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