The Bank of Ghana (BoG) has declared that, it will stop printing and circulating the GHC1 and GHC2 notes.
According to the Bank of Ghana, this is to combat the defacement of the currency denomination.
Dr. Ernest Addison, the Governor of the Bank of Ghana, revealed this at the Monetary Policy Committee (MPC) briefing on Monday, September 27, 2021, following the MPC’s 102nd regular meeting the previous week.
According to the Governor, designated cedi denominations are more widely circulated than any other currency note, therefore they return to the central bank ripped and filthy, making currency processing machinery difficult to handle.
To address this issue, the Bank of Ghana intends to phase out the GHC1 and GHC2 notes and replace them with coins.
“We have GHC1 notes in bundles and bales that we are unable to process. So, in the long run, the plan is to get rid of the GHC1 and GHC2 notes and replace them with GHC1 and GHC2 coins,” Dr. Addison added.