Mahama, Ghana’s Currency Is “Long Overdue for Refreshing”

President John Dramani Mahama has said Ghana’s currency is “long overdue for refreshing”, stressing the need to periodically update the security features of banknotes to stay ahead of counterfeiters.

Speaking during the Resetting Ghana Tour in the Upper East Region, President Mahama explained that currencies need to be refreshed periodically because prolonged use of the same designs can make them more vulnerable to counterfeiting.

“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,” he said.

The President noted that advances in counterfeiting techniques make it necessary for security features on banknotes to be upgraded from time to time.

“And so this particular currency is long overdue for refreshing,” he added.

President Mahama said he was aware of plans by the Governor of the Bank of Ghana to refresh the currency, but stressed that the central bank has the authority to determine when and how the cedi should be redesigned or replaced.

“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 stated.

A currency refresh would mainly focus on improving security features on banknotes to make them harder to counterfeit. It would not automatically change the value of the cedi or amount to a redenomination.

Such an exercise could also improve public confidence in cash transactions by providing stronger protection against counterfeit notes.

President Mahama, however, cautioned that refreshing the physical currency should not be confused with strengthening the cedi itself. He said the performance of the currency depends largely on the management of 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 cedi’s recent performance against major international currencies to the 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,” the President added.

While a currency refresh could strengthen the security of Ghana’s banknotes, it would not by itself increase the value of the cedi. Factors such as inflation, foreign exchange supply, fiscal discipline and monetary policy will continue to influence the currency’s performance.

For now, the timing and details of any currency refresh remain the responsibility of the Bank of Ghana.

President Mahama said the government would continue pursuing policies aimed at supporting the cedi, while the central bank would communicate its plans regarding any changes to the currency.

“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,” he said.

By: Paulina Armah/ Radio1.