President John Dramani Mahama says Ghana’s currency is “long overdue for refreshing”, stating that banknotes need to be periodically updated to keep up with increasingly sophisticated counterfeiting methods.
Speaking during the Resetting Ghana Tour in the Upper East Region, President Mahama explained that countries need to periodically upgrade the security features on their currencies to make it more difficult for criminals to reproduce them.
However, stressed that the decision to redesign or replace the cedi rests with the Bank of Ghana (BoG).
“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”, he said.
According to the President, security features on banknotes must be updated from time to time as counterfeiters develop new ways of reproducing currencies.
“And so this particular currency is long overdue for refreshing‘, he added.
President Mahama said he is aware that the Governor of the Bank of Ghana has plans to refresh the country’s currency.
He expects the central bank to announce details of any such move to the public when the appropriate time comes.
“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.
A currency refresh would primarily involve updating the security features on banknotes to make them harder to counterfeit.
It would not automatically mean that the value of the cedi would change, nor would it amount to a redenomination.
For consumers and businesses, the main benefit of refreshing the currency would be stronger protection against counterfeit notes and greater confidence in cash transactions.
However, a change in the physical appearance or security features of the cedi should not be mistaken for an improvement in the currency’s economic value.
President Mahama stressed that the strength and performance of the cedi are ultimately tied to how the wider economy is managed.
He said the cedi is currently performing better than it did in the past, attributing this to what he described as good economic management.
“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“, he said.
A currency refresh will not strengthen the cedi by itself
While a refreshed currency could make counterfeiting more difficult, it would not automatically make the cedi stronger.
The broader performance of the currency depends on factors 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 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.
