The Convention People’s Party (CPP) has urged the Bank of Ghana (BoG) not to discontinue the printing and circulation of pesewa coins, but instead, to enforce their acceptance nationwide. This call comes as traders, transport operators, and the public increasingly refuse to accept five, 10, and 20 pesewa coins, a trend the CPP argues undermines the national currency’s integrity and fuels unfair price hikes. The party’s stance, detailed in a statement by Acting National First Vice-Chairperson Joyce Larbie, emphasizes strengthening existing measures rather than phasing out smaller denominations.
Context: The Declining Role of Small Change
The widespread refusal to accept pesewa coins has become a persistent issue in Ghana’s commercial landscape. This informal rejection means that prices are often rounded up to the nearest cedi, disproportionately affecting low-income earners and contributing to inflationary pressures. The situation has created a de facto devaluation of the smallest currency units, making them effectively worthless in many daily transactions.
Historically, coins have served as crucial components of a stable currency, facilitating micro-transactions and providing exact change. Their gradual disappearance from circulation not only inconveniences consumers but also complicates financial management for businesses that rely on precise pricing.
CPP’s Proposed Solutions and Concerns
The CPP’s core argument is that the solution lies not in abandoning small denominations but in robust enforcement and education. The party insists that the Bank of Ghana should ensure commercial banks continue to accept and recirculate pesewa coins without imposing penalties on them. This would create a reliable channel for these coins to re-enter the economy.
Furthermore, the CPP is appealing to the Ministry of Finance and the Attorney General’s Department to publicly reaffirm the legal tender status of all cedi and pesewa notes and coins, as stipulated by the Bank of Ghana Act. This legal reinforcement aims to underscore that these coins are legitimate currency and must be accepted in all transactions.
The party also advocates for sanctions against individuals and businesses that systematically reject pesewa coins. This measure is intended to deter non-compliance and ensure that the legal framework surrounding currency is respected. The CPP believes that the failure to enforce the use of all cedi denominations weakens public confidence in the currency and distorts retail pricing.
Broader Appeal and Public Involvement
Beyond official channels, the CPP is reaching out to market associations, traders, and transport unions, including the Ghana Private Road Transport Union (GPRTU). The party implores these groups to encourage their members to accept all denominations and to diligently provide exact change. This includes ensuring that transport operators return the correct balance to passengers after fare payments.
The CPP also calls on the general public to actively participate by insisting on receiving and using pesewa coins in their daily dealings. Citizens are encouraged to report persistent refusals to the Bank of Ghana’s consumer hotline, thereby creating a feedback mechanism and increasing accountability.
Expert Perspectives and Economic Implications
While the article does not directly quote external experts, the CPP’s statement implies a concern shared by many economists regarding currency integrity and inflation management. Discarding small denominations can lead to price distortions, where the cost of goods and services is artificially inflated due to the inconvenience of small change. This practice can disproportionately impact lower-income households who rely more heavily on exact change for their purchases.
According to the Bank of Ghana’s own mandate, maintaining the stability and integrity of the currency is a primary objective. The widespread rejection of pesewa coins directly challenges this objective. The CPP’s stance suggests that effective monetary policy and currency management require not just the issuance of currency but also the active circulation and acceptance of all its denominations.
Implications for Consumers and the Economy
The CPP’s intervention highlights a significant issue that impacts the daily lives of Ghanaians. The refusal to accept pesewa coins leads to arbitrary rounding up of prices, effectively increasing the cost of goods and services. This practice erodes purchasing power, particularly for those on fixed or low incomes.
For the broader economy, the disregard for smaller denominations can undermine confidence in the national currency. It suggests a breakdown in financial discipline and can complicate efforts to control inflation. The CPP’s call to action emphasizes that restoring respect for every unit of the cedi is fundamental to maintaining economic discipline and protecting vulnerable populations from unnecessary price increases.
What to Watch Next
The Bank of Ghana’s response to the CPP’s appeal will be crucial. Observers will watch whether the central bank initiates a public campaign to enforce the acceptance of pesewa coins, revises its policies on coin recirculation, or introduces sanctions for non-compliance. The willingness of market associations and transport unions to adopt the CPP’s recommendations will also be a key indicator. Furthermore, public engagement and the rate at which citizens report instances of coin rejection will determine the effectiveness of any enforcement measures. The success of these efforts will ultimately depend on a coordinated approach involving the central bank, government, businesses, and the public to restore the full value and utility of Ghana’s currency.
Leave a Reply