Currency is a symbol of national pride and identity, yet the abuse of Cedi notes in Ghana remains a persistent problem. From reckless spraying at parties and funerals to damaging notes through neglect, these practices undermine the integrity of the Cedi and contribute to economic inefficiencies.
The Bank of Ghana (BOG), through its Clean Notes Policy, has emphasized the need to preserve the currency’s integrity, but enforcement has been weak, and public awareness is lacking.
To address this, Bank of Ghana must adopt stricter enforcement mechanisms, drive public behavioral change, and prioritize collective responsibility for protecting the Cedi.
The abuse of Cedi notes has become a cultural norm in many parts of Ghana. Events such as funeral rites, weddings, birthdays, valentine celebrations and political rallies often feature the reckless spraying and mutilation of currency as a display of wealth. This not only disrespects the Cedi but also incurs significant economic costs.
The Bank of Ghana spends billions of Cedi annually printing and replacing damaged notes, diverting resources that could have been allocated to critical areas like healthcare and education.
Automated Teller Machines (ATMs) are also affected, as mutilated notes often jam machines, disrupting banking services. Furthermore, the use of dirty or damaged notes in transactions tarnishes Ghana’s image in the global financial market.
Preserving the Cedi is not just an economic imperative but also a matter of national pride (Bashir, Tuwura, 2025). Moreover, the abuse of currency exacerbates financial exclusion. Rural areas, where cash is the primary medium of exchange, are disproportionately affected by the scarcity of clean notes.
Vendors and market traders, who rely on physical currency for transactions, often struggle to accept or dispense mutilated notes, disrupting economic activities at the grassroots level.
The recent Bank of Ghana’s strict warning against the illegal practice of creating cash bouquets and using Cedi notes for decorations, citing it as abuse of the currency are punishable under the Bank of Ghana Act 2002 (Act 612) Amendment Act 2016 Act 918 under Section 35 establishes that the Bank of Ghana has the sole right to issue and redeem currency notes and coins in the country.
This authority encompasses the printing of banknotes and minting of coins, often referred to as the responsibility for currency management. The design, issuance, custody and distribution of these goods have costs that are part of the central bank’s expenses.
There are accounting policies for printing of bank notes and minting coins. Broadly, there are three options for the management of bank notes and coin production costs. These include:
- Production costs charged when the note is released into circulation (IAS 2);
- Production costs amortized over their useful life (IAS 16);
- Production costs charged upon receipt of finished goods (IAS 1).
Expenses to produce currency are recognized in profit or loss when the new banknotes and coins are released into circulation. Unissued new banknote costs are retained in the balance sheet as an inventory item, herein referred to as deferred currency costs.
Ghana does not currently have the capacity to print its own currency banknotes locally. Bank of Ghana contracts specialized, high-tech security printing firms, mostly in Europe (such as in the UK, Germany, and Switzerland), to print and produce the Ghana Cedi. Ghana’s banknotes are primarily printed by De La Rue in the United Kingdom.
Other denominations, such as the GH¢100 and GH¢200 notes, have been printed by Crane Currency in the United States. While the printing is physically done abroad, the Bank of Ghana remains the sole authority responsible for the design, security features, and overall issuance of the currency.
2.0 Overview of Expenditures of Printing Bank Notes and Minting of Coins over past decade (2015-2024)
The Bank of Ghana reported a 47% rise in printing costs, spending GH¢986.88 million (approx. $60M+ USD) due to high cash demand and inflation. The Bank of Ghana (BoG) has reported a marked increase in its expenditure on printing the cedi – both notes and coins – with costs rising 47 percent year-on-year to GH¢986.88 million for the year ending December 31, 2024.
This marks a sharp rise from GH¢354.53million in 2023, highlighting the growing operational pressures faced by the central bank within the context of an expanding monetary base and inflationary pressures.
Based on the Bank of Ghana’s (BoG) annual reports and audited financial statements, the cost of printing banknotes and minting coins increased between 2021 and 2022. In 2021, The Bank of Ghana spent approximately GH¢174 million to GH¢179 million to print currency notes and coins. In 2022: The cost surged significantly to approximately GH¢325 million to GH¢337 million.
The cost of currency issuance (which includes printing, distribution, and processing) nearly doubled in 2022 compared to 2021. The rise in costs was attributed to increased demand for physical cash, the need to replace worn-out notes, and inflationary pressures that drove up operating costs.
The Bank of Ghana (BoG) spent ¢337.5 million on printing currency notes in 2020, up from ¢306.2 million in 2019, according to the bank’s annual reports. Total currency issuance expenses, including operational costs, reached ¢347.8 million in 2020, driven by higher demand and the introduction of new high-value denomination.
The rise in costs was largely due to printing new GH¢100 and GH¢200 notes, with the 2019 printing cost representing a significant 108% increase over 2018 levels.
The Bank of Ghana spent approximately GH¢153 million ($153.1 million) on printing currency notes and coins in 2018, according to the bank’s 2018 annual report. This 2018 cost, which included agency fees and other expenses, was about 33% lower than the GH¢224.7 million incurred for printing in 2017.
Based on Bank of Ghana annual reports and related financial disclosures from that period, the costs for printing banknotes and minting coins were as follows: In 2016, The Bank of Ghana spent approximately GH¢306.2 million on printing currency notes and minting coins. In 2017: The cost was GH¢153 million for printing cedi notes.
Based on Bank of Ghana annual reports and related financial disclosures from that period, the printing currency notes and minting coins for 2015 was GHC122 million. The cost of currency production in 2015 was influenced by several macroeconomic challenges: High Inflation: Headline inflation ended in 2015 at 17.7%, increasing the demand for higher volumes of physical cash to facilitate transactions.
Currency Depreciation: The Ghana Cedi depreciated by 16.1% against the US Dollar in 2015. Since most banknote printing and coin minting for Ghana is conducted by international firms (such as De La Rue), these costs are typically paid in foreign currency, making them more expensive as the cedi weakens.
The habitual abuse of Cedi notes has far-reaching economic implications. According to estimates, the cost of printing new currency to replace damaged notes runs into billions of Cedi annually. In 2024 alone, the Bank of Ghana spent GHC986.88 million on printing currency.
This expense was compounded by inflation and the depreciation of the Cedi, further straining the nation’s economy. The rise in printing costs comes as the bank continues to manage a delicate balance between providing sufficient liquidity for the economy and maintaining fiscal stability.
Despite an ongoing push toward financial digitization, including rollout of the e-Cedi, cash remains a vital part of the economy – particularly in the largely cash-based informal sector. The increases in currency printing expenses were linked to several factors including heightened demand for physical cash, a trend that has intensified in the face of economic uncertainty and rising inflation.
- Security Features: Holograms, watermarks, and security threads increase costs.
- Material: Cotton-linen blend (used for USD) or polymer.
- Volume: Larger print runs reduce the cost per note: Economic uncertainty and rising inflation. The total cost includes designing, purchasing, and distributing notes, with costs often rising during economic uncertainty when cash demand increases.
3.0 Bank of Ghana must adopt several, multi-pronged strategies to reduce the rising costs of printing bank notes and minting coins
The Bank of Ghana (BoG) adopted several, multi-pronged strategies to manage the rising costs of printing banknotes and minting coins, which increased by 47% in 2024 to GH¢986.88 million.
These following strategies focus on enhancing digital payments, promoting higher-denomination notes, encouraging coin usage, and improving currency longevity. Bank of Ghana must proactive strategies in dealing the menace:
▀ Legal and Regulatory Enforcement (Combating Abuse)
Bank of Ghana should start prosecuting of offenders and the court should offer stiffer punishments for all offenders to serve as deterrent
Anti-Abuse Campaigns & Prosecution: The BoG must actively partner with law enforcement agencies (Police, EOCO, OSP,) to arrest and prosecute individuals for spraying, writing on, stapling, or dancing on Cedi notes. Bank of Ghana must ban on money bouquets; The BoG must classify the use of Cedi notes for decorations, such as money bouquets or cakes, as a criminal offense as done the Central Bank of Nigeria.
▀ Acceleration of Digitalization and eCedi: The BoG must urgent develop eCedi, a Central Bank Digital Currency (CBDC), aimed at reducing reliance on physical cash. By promoting electronic transactions, the bank aims to significantly cut costs related to printing, storing, transporting, and replacing physical banknotes.
Digital and Cashless Policy Strategies must be aggressively adopted by Bank of Ghana like the Central Bank of Nigeria. The BOG must aggressively promote electronic channels to reduce the physical handling of cash and enhance transparency.
The e-Cedi will serve as a digital version of the Cedi, designed to supplement cash, increase financial inclusion, and make monetary policy more effective. To curb fraud in the electronic space, the BoG must mandate usage of Point of Sale (PoS) terminal update with built-in GPS tracking and registered with exact coordinates.
▀ Bank of Ghana must encourage Banknote Handling Practices; The Bank of Ghana must encourage the public to adopt responsible banknote handling practices to preserve the quality and enhance the lifespan of the Cedi banknotes are symbols of our national pride, and their condition in circulation reflects who we are.
Do not store the Cedi indecently: Keep banknotes clean, flat and avoid folding, crumpling, or stapling. Do not write on Cedi: Avoid writing on banknotes. Do not squeeze the Cedi: Store in a wallet, Purse or Pouch. Do not deface the Cedi: Avoid exposing banknotes to liquids like water, oil etc. Do not spray the Cedi: Give cash gifts in envelopes or via electronic channels
▀Encouraging Use of Coins: The Bank of Ghana must launch campaigns urging the public to embrace coins for daily transactions. Coins have a longer lifespan than paper notes, reducing the frequency of replacement and saving on printing costs.
▀ Introduction of Higher Denominations: To reduce the volume of notes printed for high-value transactions, the BoG introduced GH¢100 and GH¢200 notes, as well as a GH¢2 coin. These higher values are designed to bring efficiency to currency management and lower the per-unit cost of issuing cash.
▀ Phasing Out Lower Denomination Notes: To promote the use of durable alternatives, the BoG is actively replacing 1 cedi and 2 cedi notes with coins, which are more cost-effective over their lifespan.
▀ Upgrading Currency Security and Durability: The BoG must regularly upgrade banknotes with enhanced security features and improved durability. These notes are designed to last longer in circulation, thereby reducing the need for frequent reprints.
▀ Bank of Ghana must conduct mystery shopping: The BOG must conduct unannounced “mystery shopping” at cash-hawking hotspots to identify and arrest offenders involved in the illegal trade of currency note
▀ Policy on Currency Care: The Bank of Ghana has urged citizens to handle currency with care. Proper handling prevents premature damage to notes, which saves the central bank from having to frequently replace damaged currency. “Cedi Our Pride” Campaign: A nationwide sensitization initiative to educate the public on treating Cedi as a national symbol.
▀ Advocacy for Reduced Taxation on Digital Transactions: There is ongoing advocacy, supported by industry stakeholders, to reduce levies on electronic transactions (such as E-Levy) to encourage digital adoption, which implicitly reduces cash demand.
▀ Bank of Ghana must promote of digital habit: The banks must be encouraged a shift toward USSD, mobile banking, and internet banking for 90% of transactions to minimize dependence on physical cash.
4.0 Conclusion
The Bank of Ghana must employ a multi-faceted approach to protect the Cedi, focusing on maintaining its physical integrity, stabilizing its value in the foreign exchange market, and modernizing the payment ecosystem.
These measures must come at a time when the BoG is managing significant operational costs and aims to curb the high demand for physical cash, which has outpaced other monetary aggregates.
Protecting the Cedi is a collective responsibility that requires collaboration between the government, Bank of Ghana, financial institutions, and the public. By fostering a culture of respect for the currency, Ghana can reduce economic inefficiencies, enhance national pride, and strengthen its financial systems.
The time to act is now. As a country, we must embrace digital payment solutions, hold offenders accountable, and champion the integrity of Cedi. Together, we can ensure that Ghanaian currency remains a symbol of unity, pride, and economic resilience.
Reference
Bank of Ghana’s Various Annual Financial Reports from 2015-2024
Tuwura, B (2025) Protecting Nigeria’s Currency: Ending the Abuse of Naira Notes: Cheetahs Policy institute: Nigeria
Dr Richmond Akwasi Atuahene
Banking/Corporate Governance Consultant
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