According to the Central Bank, the poor handling of the notes, that is torn and soiled, make it expensive to print them.
Governor of the Bank of Ghana, Dr. Ernest Addison, addressing the press said the Central Bank will not print any more of the ¢1 and ¢2 notes when those in circulation are phased out.
According to him, the two denominations will be replaced by the ¢1 and ¢2 coins respectively.
He said this during the 102nd Monetary Policy Committee (MPC) press conference in Accra on Monday 27th September.
“The view for the longer term is to more or less get the ¢1 and ¢2 notes and use the ¢1 and ¢2 notes coins.”
“Both the ¢1 and ¢2 notes would eventually be phased out because they are not cost-effective in terms of the printing cost”, he pointed out.
“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. We have bales and bales of ¢1 notes that we are not able to process”, Dr. Addison stressed.
“You will recall that this is a note [¢2] that was issued as a commemorative note; commemorative notes are not notes that you continue to print”, he continued.
“What we have done in the last two years is to introduce the ¢2 coin. You would expect that, eventually, it would more or less play the role that the ¢2 note is playing.”