The management of Ghana International Trade and Finance conference (GITFIC) has applauded the Bank of Ghana (BoG) for its plans to fade out one and two cedi notes in the system.
They have also called on the public to handle the coins of two and one cedi denominations to avoid frequent expenditure on its replacement.
A statement signed by Mr Selassi Koffi Ackom, Chief Executive Officer of GITFIC and copied to the Ghana News Agency on Wednesday in Accra said, “We, at GITFiC, are of the view that the regulator has every right, with her decision to fade out the circulation of the GH¢1.00 and GH¢2.00 notes. While the regulator has the ascendancy to take such actions in the interest of a conducive monetary environment in Ghana, we would relish the public to with additional critical issues, which underpinned such monetary policy actions with the fundamentals of the initial decision.”
The statement said “Under the Governorship of His Excellency Paa Kwesi Amissah Arthur in the erstwhile Atta Mills Administration, on June 14, 2010, the GH¢2.00 note was commissioned for circulation as a commemorative note, that is the Centenary of the Birth of Osagyefo Dr. Kwame Nkrumah.”
It added that “Another critical reason the GH¢2.00 note came into circulation was due to the issue of change. Let us not forget that Ghana’s economy is predominantly driven by Micro Small and Medium Enterprises (MSMEs). The issue of balancing after buying/selling is a major issue affecting the day-to-day transaction of the Micro Small and Medium Enterprises (MSMEs) of Ghana’s economy then and now. For instance, if a buyer purchased an item of GH¢1.00 using the GH¢5.00 note, a change of GH¢4.00 would be given to the buyer in four GH¢1.00 denominations.
To bridge this difficulty is what appraised the printing and circulation of the GH¢2.00 note, which was partly for commemorative purposes as verbalized above. These were the fundamentals that had divulged the printing of the GH¢2.00 note under the administration of former President, John Fiifi Atta Mills.”
The statement said the commemorative aspect of the GH¢2.00 note had long ended and as Ghana’s economy was expanding and projected to expand more in post covid-19 era the decision to revise the printing and circulation of such lower denominations was in the right direction.
“A bulky GH¢5,000.00 in GH¢1.00 or GH¢2.00 denominations attract much risk than a GH¢5,000.00 in GH¢5.00 or GH¢200.00 denominations.”
The statement said the cost of printing and circulating such lower denominations, was detrimental to Ghana’s economy in terms printing and regular replacement.
“Phasing out does not mean the GH¢1.00 and GH¢2.00 denomination will be banned from being used. This is not economic theory; it simply means it is getting replaced by its coins equivalent in quantity for accessibility to all.
The statement urged the BoG to use the GH¢5.00 note for the portrait of Osagyefo Dr. Kwame Nkrumah to avoid political criticisms.