The Bank of Ghana has introduced GHC100 and GHc200 in the country’s currency denomination mix. It has also introduced the GHC2 coins. This was announced by the Governor of the Central Bank, Dr Ernest Addison at a press conference in Accra on Friday. Explaining the rational for the development, the Governor explains the face value of the cedi compared to the US dollar over the past 12 years has eroded due to sustained periods of high inflation and depreciation. He believes the new currencies will help shore up value of the currency.
The redenomination currency at the time was to eliminate four zeros from the existing units of currency in an attempt to introduce efficiency in the economy and remove the dead weight burden associated with transactions. At the time of the denomination, the GHc1 was equivalent to the US$1, the highest denomination then was the GHc50 which was equivalent to US$50. Twelve years after the redenomination exercise sustained periods of inflation and the perennial depreciation of the currency has eroded in real terms the face value of the series of notes he said. Since 2015 there have been rumors about the introduction of the new denominations but the Central Bank denied such rumors.
In March 2017, it introduced a new GHc5 note as part of it’s celebrations marking the 60th anniversary. The new note continues to be in circulation with existing features of the same value. Two years later, in May 2019, it upgraded all the banknotes excluding GHc5 and GHc2 notes. The upgraded banknotes had enhanced security features in line with evolving changes in the Technological landscape. They also had improved durability and machine readability.