Central Bank Warns Rejection Fuels Inflation
The Bank of Ghana (BoG) warned against rejecting coins, particularly low denominations like 10 and 20 pesewas, during a currency management workshop by WAIFEM on July 14, 2025. Head of Currency Management, Dominic Owusu, stressed that all legal tender, including 1, 5, 10, 20, 50 pesewas, and 1 and 2 cedi coins, must be accepted.
Owusu noted a growing trend of vendors and individuals refusing coins, especially as change, which distorts pricing and fuels inflation by forcing price rounding. He emphasized coins’ role in price stability and their longer circulation life compared to banknotes, reducing printing costs. The BoG’s 2024 data shows 40% of transactions in urban markets like Accra’s Makola involve coin rejection, impacting small-scale traders.
The warning aligns with the BoG’s public education campaign to promote financial discipline. Owusu urged Ghanaians to accept all denominations, citing legal tender laws under the Bank of Ghana Act 2002. Non-compliance risks penalties, though enforcement remains challenging, with only 15 prosecutions since 2020. The BoG plans to intensify awareness through radio and community outreach.