Explainer: Why Mahama thinks it is illogical to print new cedi notes

Explainer: Why Mahama thinks it is illogical to print new cedi notes

- The introduction of the new GHc 100 and 200 notes into the system was met with a lot of hostility and criticisms

- Both individuals and retail outlets have refused to accept the new notes which have been identified as a legal tender

- Former president, John Dramani Mahama has described as illogical the need to print new cedi notes

Some retail outlets in their bid to show disapproval for the introduction of the new cedi notes out-rightly refused to collect the new notes as payment for goods.

Not just have retail outlets rejected the new cedi notes but Ghanaians who are given these notes whenever they make huge withdrawals from the banks, also refuse to take them.

The Bank of Ghana has, however, come out to urge retail outlets and individuals not to reject the new cedi notes since they are a legal tender.

The flagbearer of the opposition National Democratic Congress (NDC) John Dramani Mahama says it is illogical for any government to print new notes.

READ ALSO: 2019 cedi performance worst in 3-years under Akufo-Addo administration

His argument stems from the fact that for a country striving to have a cashless economy therefore it was not prudent to circulate new notes into the system.

He added that with the government announcing plans to join its West African neighbors in adopting the Eco currency, he found it difficult to understand the government’s reason for introducing new notes.

His remarks come on the heel of a statement from the Jubilee House signed by the Director of Communications, Eugene Arhin, announcing that Ghana will soon swap the cedi for the new single ECOWAS common currency, the ECO.

He added that before the introduction of new notes there was no public sensitisation and the banks received no notification.

READ ALSO: Abused ex-wife of former news editor of Joy and Citi FM tells story and shares photos

In other news, the cedi’s perennial struggles against the US dollar does not seem to want to go away as 2019's performance is rated as the worst in the three-year-old Akufo-Addo administration.

According to data from the Bank of Ghana, the cedi depreciated by about 10.6 percent against the greenback compared to the 8.21 percent depreciation achieved in 2018.

Even the 2018 performance was worse off when compared to 2017 where the cedi showed a rare determination to shed 3.27 percent of its value against the US dollar.

READ ALSO: New Year Message: Akufo-Akufo assures Ghanaians of a peaceful and fair election in 2020

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Source: Yen

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