Ghana’s smallest coins are still legal, but many people will not take them, creating growing tension in daily cash transactions across the country.
I have observed that 10 and 20 pesewa coins, though still recognised as legal tender by the Bank of Ghana, are increasingly being rejected by traders, market vendors and commercial transport operators, despite official warnings that such refusals are unlawful.
The central bank maintains that neither the 10 pesewa nor the 20 pesewa coin has been withdrawn or demonetised. It insists that all currency issued by the Bank remains valid for all payments and must be accepted without exception. Under Ghana’s currency laws, only the central bank has the authority to withdraw legal tender from circulation.
However, in practice, the coins are often dismissed in everyday transactions. I usually use the commercial transport and I observed something worrying on June 25, when a “trotro mate” refused to accept them, arguing they are inconvenient and of little practical value.
This has led to frustration among customers who say they are sometimes unable to complete payments using official currency.
The Bank of Ghana has cautioned that rejecting legal tender is not only improper but also contributes to price distortions and what it describes as hidden inflation. It has urged traders, transport operators and the general public to comply with currency regulations to preserve confidence in the monetary system.
The problem is not limited to coins alone. There is also growing reluctance to accept worn or torn banknotes, particularly among public transport operators and passengers. These disputes occasionally escalate into heated arguments, and in some cases, physical confrontations.
Under existing practice, such notes are supposed to be accepted in circulation, with fuel stations receiving them and banks later exchanging them through the central bank for fresh currency. But that system appears to be breaking down in parts of the informal economy.
From the streets and markets to public transport, the issue points to a wider challenge in the everyday handling of cash, where official policy and public behaviour are increasingly out of step.
Martha Seyram Jackson
