Bank of Ghana Issues Stern Warning on Cedi Coin Rejection
The Bank of Ghana (BoG) has issued a firm warning to traders and businesses across the country against rejecting cedi coins as a form of payment. In a statement released on Thursday, the central bank emphasized that refusing to accept the coins is illegal and undermines the integrity of the Ghanaian currency. The BoG noted that cedi coins remain legal tender and must be accepted for all transactions, including the purchase of goods and services.
Legal Framework and Penalties
According to the Bank of Ghana, the rejection of cedi coins violates Section 3 of the Bank of Ghana Act, 2002 (Act 612), which designates all coins issued by the central bank as legal tender. The BoG warned that any person or entity found guilty of refusing to accept the coins could face penalties, including fines or imprisonment. The central bank urged the public to report any instances of coin rejection to the police or the BoG for necessary action.
Impact on Currency Acceptability
The warning comes amid growing concerns that some traders, particularly in urban markets, have been rejecting cedi coins, citing issues such as bulkiness, lack of storage, or preference for paper notes. The BoG described this practice as detrimental to the currency's acceptability and the efficiency of the payment system. The central bank reiterated its commitment to ensuring that all denominations of the cedi, including coins, remain widely accepted and used in daily transactions.
Public Education and Enforcement
In addition to the warning, the Bank of Ghana announced plans to intensify public education campaigns to raise awareness about the legal status of coins and the importance of their acceptance. The BoG also stated that it would work with law enforcement agencies to enforce compliance and ensure that traders adhere to the law. The central bank encouraged the public to embrace the use of coins as a convenient and durable form of currency.
Historical Context and Previous Actions
This is not the first time the Bank of Ghana has addressed the issue of coin rejection. In 2019, the central bank launched a nationwide campaign to promote the use of coins, highlighting their durability and cost-effectiveness compared to paper notes. Despite these efforts, resistance from some traders has persisted. The latest warning signals the BoG's determination to tackle the problem more aggressively.
Stakeholder Reactions
The warning has drawn mixed reactions from traders and business associations. Some traders have expressed concerns about the practicality of handling large volumes of coins, while others have welcomed the move as a step toward normalizing the use of all denominations. The Ghana Union of Traders Association (GUTA) has called for dialogue with the BoG to address the concerns of its members, including the provision of coin-counting machines and better banking services for coin deposits.
Conclusion
The Bank of Ghana's warning serves as a clear reminder that cedi coins are legal tender and must be accepted by all. The central bank's commitment to enforcement and public education is expected to improve compliance and strengthen the currency's role in the economy. As the BoG continues to monitor the situation, traders are advised to comply with the law to avoid penalties.
