The Bank of Ghana (BoG) has issued a stern warning that the widespread rejection of 10 and 20 pesewa coins threatens price stability and could exacerbate inflation. D
ominic Owusu, Head of Currency Management at the BoG, emphasized that all coins and notes issued by the central bank remain legal tender and must be accepted for transactions without exception. This practice has become increasingly common in small-scale commerce, prompting concerns about its macroeconomic repercussions.
Speaking at a currency management workshop organized by the West African Institute for Financial and Economic Management (WAIFEM), Owusu clarified that refusing coins disrupts payment systems and encourages price rounding. Such rounding artificially inflates prices, directly countering national efforts to control inflation. He urged the public to accept all denominations, including one pesewa to two-cedi coins, stressing that “there is no justification for rejecting legally issued currency.”
The BoG highlighted additional benefits of coin usage, noting their durability reduces long-term currency production and replacement costs compared to paper notes. The warning aligns with intensified public education campaigns to promote currency integrity as a pillar of macroeconomic stability. Concurrently, the WAIFEM workshop is exploring advanced currency management strategies, including AI-driven fraud detection, digital currency developments, and big data applications.