The Central Bank of Ghana has released specimen of new GHC 100 and GHC 200 Cedi notes that are expected to hit the market soon.
The Bank of Ghana has also announced the addition of GHC2 coins in addition to the existing coins in circulation.
Briefing the media on the move, the Governor of the central bank, Dr Ernest Yedu Addison said: “The redenomination exercise aimed to eliminate four zeros from the existing units of currencies in an attempt to introduce efficiency in the economy and removes the dead-weight burden associated with transactions.
“We need banknotes and coins that are convenient for most people to use, high quality, secure and cost-effective. Accordingly, in March 2017, the Bank of Ghana begun a process of conducting a thorough review of the structure of the currency including on the note/coin boundary and acceptability and use of the individual currency series,” Dr Addison said.
“At the time of the redenomination, the GH¢1 was equivalent to US$1, the highest denomination then was the GH¢50 which was equivalent to the GH¢50. Twelve years after the redenomination exercise, sustained periods of high inflation and the perennial depreciation of the currency has eroded in real terms the face value of the series of notes”.
The new notes are said to come with loads of security features.
Some of the features are even reported to be animated as they move when the notes are tilted.
He said the review exercise which involved conducting a nationwide survey with market operatives, businesses and international stakeholders as well as some empirical exercise.
The Governor added that, “the outcome of these exercises revealed the resurgence of deadweight burden issues on the economy due to past significant inflation and perennial depreciation of the currency, a significant increase in the demand for higher denomination banknote and increased the cost of printing.”
The upgrade exercise retained the design features of the existing series of banknotes and coins as introduced 12 years ago in 2007, in a redenomination exercise that sought to recalibrate the currency due to significant deadweight burden which was a legacy of long periods of high inflation and currency devaluation.
Dr Addison explained that the “redenomination exercise aimed to eliminate four zeros from the existing unit of currencies in an attempt to introduce efficiency in the economy and remove the dead-weight burden on the economy associated with transactions. At the time of the redenomination, GH¢1 was equivalent to US$1.
“The highest denomination then was GH¢50 and was equivalent to the US$50. Twelve years after the redenomination exercise, sustained periods of high inflation and the perennial depreciation of the currency have eroded, in real terms, the face value of the series of the notes.”