President John Dramani Mahama says Ghana’s currency is “long overdue for refreshing”, citing the need to periodically upgrade the security features on banknotes to stay ahead of counterfeiters.
According to the President, currencies must be periodically updated to make it more difficult for criminals to reproduce them. He, however, stressed that the authority to redesign or replace the cedi rests with the Bank of Ghana.
“Every country, every ten years, you are supposed to refresh your currency because if you use the same currency for too long, people learn how to counterfeit it,” President Mahama said during the Resetting Ghana Tour in the Upper East Region.
He explained that security features on banknotes must be updated from time to time to keep pace with increasingly sophisticated counterfeiting techniques.
“And so this particular currency is long overdue for refreshing,” he said.
President Mahama disclosed that he is aware of plans by the Governor of the Bank of Ghana to refresh the currency, adding that the central bank would announce the details to the public at the appropriate time.
“I know the governor has plans to refresh the currency and I am sure that at the appropriate time, the Bank of Ghana will let Ghanaians know what they are doing about it,” he said.
Currency refresh not a redenomination
A currency refresh would primarily involve updating the security features of Ghana’s banknotes to make counterfeiting more difficult.
It would not, by itself, alter the value of the cedi or amount to a redenomination.
For consumers and businesses, the immediate benefit would be stronger protection against counterfeit notes and greater confidence in the security of cash transactions.
President Mahama, however, cautioned against confusing the physical appearance or security of the currency with its underlying economic strength.
He maintained that the value and performance of the cedi are ultimately influenced by the management of the wider economy.
“What I would say is that the cedi today is stronger than it was in the past because of good economic management,” he said.
The President pointed to the government’s economic policies as a key factor behind the cedi’s recent performance against major international currencies.
“Your currency is as strong as your economic management and because of the good policies we put in place, the cedi is holding its own against other major currencies,” the President added.
Bank of Ghana to determine timing
While a currency refresh could help Ghana stay ahead of increasingly sophisticated counterfeiting methods, it would not, on its own, strengthen the cedi.
The broader performance of the currency will continue to depend on key economic fundamentals, including inflation, foreign exchange supply, fiscal management and monetary policy.
For now, the timing and scope of any currency refresh remain with the Bank of Ghana.
President Mahama said the government would continue implementing policies aimed at supporting the strength of the cedi, while the central bank determines when and how the currency should be refreshed.
“We will continue to make sure that the economy bolsters the strength of the cedi. But, like I said, at the appropriate time, the Governor will apprise us of any plans that he has for replacing the currency,” he said.
