November 30, 2019

Reasons for new cedi notes ‘does not make sense’ – Adongo

The Member of Parliament for Bolgatanga Central and member of the Finance Committee in Parliament, Isaac Adongo has questioned the intention behind the introduction of the new Cedi notes.

The Bank of Ghana on Friday introduced GH¢100 and GH¢200 notes in the country’s currency denomination mix. It also introduced a GH¢2 coin.

Explaining the rationale for the development, the Governor of the Central Bank, Dr. Ernest Addison said the face value of the cedi compared to the US dollar over the past 12 years had eroded due to sustained periods of high inflation and depreciation thus, the new currencies will help shore up the value of the currency.

But Mr. Adongo said the decision portrays government as one in disarray.

“This actually tells of a government that is in total disarray. There is a very serious policy contradiction in terms of what the government proposes for ensuring a smooth running of the economy and the actions that are being taken by the government”.

“If you consider the action that has just been taken by the Bank of Ghana, it is quite clear that there is a motive other than what is being told the people of Ghana because whatever has been put out there simply doesn’t make sense. We are in an economy where we are struggling to bring about a cashless economy”.

The Vice-Chairman of the Public Accounts Committee of Parliament, Edward Dery also called for full disclosure of the cost involved in the introduction of the Cedi notes.

Speaking to Citi News, the Lambussie-Karni MP insisted that the government had to assure Ghanaians that the introduction is not a loss to the state.

“If you can go and polish our own currency at a cost to the taxpayer and you are not willing to tell us how much it costs us then that is a complete financial loss to the state.”

Furthermore, Mr. Dery did not think these new Cedi notes will add any value to the cedi which has struggled to keep pace with major currencies on the international market.

“Definitely it is going to cost you and me to pay for it and it doesn’t add any value to our current situation in the commercial market, the cedi to the dollar and any other currencies.”

An economist, Dr. Laud Mensah has also said that the introduction of the GH¢ 100, GH¢ 200 denomination notes by the Bank of Ghana may cause inflation.

He said prices of goods of lower categories such as water will shoot up as a result of the development.









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