On Monday, September 27, The Bank of Ghana Governor, Dr. Ernest Addison announced plans to phase out the GH¢1 and GH¢2 notes from circulation.
He made this statement to answer the question on why the two cedi note was in short supply in some parts of the country during the bank’s Monetary Policy Committee press conference.
BoG phasing out GH¢1 and GH¢2 notes – reasons
According to Dr. Ernest Addison, the GH¢1 and GH¢2 notes were not cost-effective given their coin version is already in circulation.
“In the long run, the plan is that the GH¢1 and GH¢2 notes should be phased out. They are not cost-effective in terms of the printing cost,” Dr. Ernest Addison said.
He further added that the GH¢1 and GH¢2 notes usually get worn out and dirty, hence plans to phase out the notes.
“They mostly return torn, soiled, and dirty. We have bales and bales of those two and so the view is to get them out and use the coins,” he said.
Dr. Ernest Addison further indicated that the GH¢1 and GH¢2 notes were commemorative notes (bank notes to memorialize an event of historic significance to the country) hence they are notes that do not require further printing.
“You will recall that this is a note [¢2] that was issued as a commemorative note; commemorative notes are not notes that you continue to print”, he continued.
“What we have done in the last two years is to introduce the ¢2 coins. You would expect that, eventually, it would more or less play the role that the ¢2 note is playing,” Dr. Ernest Addison further added.
What this means is that the GH¢1 and GH¢2 notes will be replaced by their coin counterparts.
“The view for the longer term is to more or less get the GH¢1 and GH¢2 notes and use the GH¢1 and GH¢2 notes coins,” Dr. Ernest Addison said.
Source: Ghana Talks Business, https://ghanatalksbusiness.com/2021/09/why-bog-is-phasing-out-gh%c2%a21-and-gh%c2%a22-notes/