The Central Bank has reacted to claims by former President John Mahama that it did not follow proper procedure in introducing new notes to the country’s currency mix.
“The public was ambushed. One day we just got up and they said they are introducing new notes. No public sensitisation, the banks received no notification…Somebody takes it to a shop and they say we don’t know about these notes,” Mahama said at the 38th Anniversary celebration of the 31st December Revolution at Winneba in the Central region.
In a statement, the Bank of Ghana said: “The deadweight burden of carrying large sums of money for economic transactions was returning, with the phenomenon of carrying currency in plastic bags. As is the normal practice in all jurisdictions, Central Banks undertake periodic reviews of the structure of existing currencies.
“In fact, international best practices require monetary authorities to review their currency regimes at intervals between five (5) and ten (10) years to (i) ensure that demand for banknotes are well aligned with economic activity, (ii) address weaknesses and challenges noted in the management of notes and coins in circulation, (iii) assess the non-usage of a particular series to ensure efficiency in printing, and (iv) address technological innovations that improve security features of the currencies.
“Furthermore, the denomination structure of the banknote should align well with the needs of the people who use it for their daily transactions”.
The bank also claimed other African countries have visited Ghana to learn from the initiative.