?Rejection of coins can have several impacts on the economy, such as contributing to inflation, weakening monetary policy, and increasing printing costs for the central bank.
Coins play an important role in Ghanas monetary system by facilitating small transactions and ensuring price accuracy.
The coins currently in circulation are the 1 pesewa, 5 pesewas, 10 pesewas, 20 pesewas, 50 pesewas, GH¢1 coin, and GH¢2 coin.
The Head of Currency Management at the Bank of Ghana (BoG), Dominic Owusu, has stated that all these coins are legal tender and must be accepted in every form of payment.
Please accept the coins. No one should reject any coin legally issued by the Central Bank, he told the media in Accra.
He also cautioned the public against rejecting coins, especially the 10 and 20 pesewa denominations.
Coins allow traders to provide exact change, and when they are rejected, sellers are often forced to round prices up.
For instance, if a buyer pays GH¢3.00 for an item priced at GH¢2.80 and the seller refuses to give 20 pesewas in change, the price is effectively increased. If this happens on a large scale, it can gradually push prices up, contributing to inflation.
Coins are meant to make small transactions easier and more accurate. Without them, basic purchases can become difficult.
The BoG is responsible for managing the countrys money supply to maintain economic stability. When coins are rejected, it disrupts the smooth flow of money.
Rejecting coins is more than just an inconvenience, it affects inflation control, everyday transactions, public spending, and trust in the national currency.
This is why it is important to accept all legal denominations, no matter how small. Doing so supports a stable and inclusive economy.
The BoG is therefore reminding the public that coins are not just spare change, they are an essential part of the countrys financial system.
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?DR/MA
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