The Bank of Ghana (BOG) has issued a press statement to further defend its action on the alleged ‘ambush’ action in introducing the new notes. In the press release the Bank continues to justify the action with in-depth reviews.
According to the bank, it emerged that there is a significant increase in the demand for higher denomination banknote. It also came out clearly that the existing high denominations of GH¢50 and GH¢20 accounted for about 70% of the value of currency stock compared to 27% at the time of redenomination. The Bank also cites the deepened depreciation and inflation since the redenomination 12 years ago.
Since the introduction of the new notes and coins, there have been varying opinions on the effect on inflation and money supply. Questions of its necessity have also been raised considering the nation’s drive towards a cashless economy and recently the indication to join the common West African currency the Eco. The latest is the description of the exercise as an ‘ambush’ by the leading opposition figure, ex-president John Mahama.