The Bank of Ghana (BoG) says it is getting ready to phase out the GHC1 and GHC2 notes in circulation.
The BoG says the two denominations will be replaced by their respective coin.
Addressing a press conference after the meeting of the Monetary Policy Committee (MPC) on Monday 27 September, the Governor of the Bank of Ghana, Ernest Addison, said: “Both the GHC1 note and the GHC2 note would eventually be phased out because they are not cost-effective in terms of the printing cost.
“[These are] notes that circulate very widely, and they come back very torn and soiled and they are very difficult for our currency processing machines to process …”
Unfit for purpose
He added, “We have bales and bales of GHC1 notes that we are not able to process. So the view for the longer term is to more or less get out of the GHC1 and GHC2 notes and use the GHC1 and GHC2 coins.”
Dr Addison added: “You will recall that this is a note [GHC2] that was issued as a commemorative note … Commemorative notes are not notes that you continue to print.
“And, therefore, what we have done in the last two years is to introduce the GHC2 coin. You would expect that, eventually, it would more or less play the role that the GHC2 note is playing.”