President John Dramani Mahama has disclosed that the Bank of Ghana (BoG) is considering a refresh of the country’s banknotes to strengthen security features and stay ahead of increasingly sophisticated counterfeiting methods.
The President said the cedi had been in circulation for a considerable period and required periodic updates to make it more difficult for criminals to reproduce.
He made the disclosure during the Resetting Ghana Tour in the Upper East Region, stressing that the authority to determine whether and when the currency should be refreshed rests with the central bank.
“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,” President Mahama said.
He explained that currency notes needed to undergo periodic security upgrades as counterfeiters developed new techniques for reproducing banknotes.
“And so this particular currency is long overdue for refreshing,” he added.
BoG to Announce Details
President Mahama said he was aware that the Governor of the Bank of Ghana had plans to refresh the cedi but indicated that the central bank would announce the details when the preparations were complete.
“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 upgrading security features on banknotes and would not automatically amount to a redenomination or change in the value of the cedi.
The exercise could include the introduction of enhanced features designed to make counterfeit notes more difficult to produce and easier for the public and financial institutions to authenticate.
Mahama Links Cedi Strength to Economic Management
The President also sought to distinguish the physical redesign of the currency from its underlying economic strength.
He said refreshing the banknotes would address security concerns but would not, on its own, determine the value of the cedi against other currencies.
According to President Mahama, the performance of the cedi is ultimately influenced by broader economic conditions and the policies used to manage the economy.
“What I would say is that the cedi today is stronger than it was in the past because of good economic management,” he said.
He attributed the currency’s recent performance against major international currencies to government’s economic policies.
“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 added.
Timing Remains with Bank of Ghana
The President reiterated that government would continue implementing measures aimed at supporting the stability of the cedi, while leaving the timing and technical details of any currency refresh to the Bank of Ghana.
He said the central bank would communicate its plans to the public when the appropriate arrangements had been made.
“We will continue to make sure that the economy bolsters the strength of the cedi. But, like I said, at the appropriate time, the Governor will apprise us of any plans that he has for replacing the currency,” President Mahama said.
A possible currency refresh could therefore strengthen the security of Ghana’s cash system, but the longer-term strength of the cedi will continue to depend on economic fundamentals, including inflation, foreign exchange availability, fiscal management and monetary policy.
