President John Dramani Mahama has said Ghana’s currency is “long overdue for refreshing”, citing the need to periodically upgrade security features on banknotes to stay ahead of counterfeiters.
Speaking during the Resetting Ghana Tour in the Upper East Region, the President explained that currencies need to be updated periodically because criminals become more familiar with existing security features and techniques for reproducing banknotes.
“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 stressed that security features on banknotes must be regularly enhanced to make counterfeiting more difficult.
“And so this particular currency is long overdue for refreshing,” he added.
BoG to Decide on Currency Refresh
President Mahama disclosed that he is aware of plans by the Governor of the Bank of Ghana (BoG) to refresh the country’s currency.
He, however, noted that the decision on whether and how the cedi should be redesigned or replaced rests with the central bank.
“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 introducing or upgrading security features on banknotes to make them harder to counterfeit. It would not, in itself, amount to a redenomination or change the value of the cedi.
Refresh Does Not Mean Stronger Cedi
The President also distinguished between improving the physical security of Ghana’s banknotes and strengthening the value of the cedi.
According to him, the performance of the currency is ultimately tied to the management of the wider economy.
“What I would say is that the cedi today is stronger than it was in the past because of good economic management,” President Mahama said.
He attributed the cedi’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.
What a Currency Refresh Means
A refreshed currency could strengthen protection against counterfeit notes and improve confidence in cash transactions.
However, it would not automatically strengthen the cedi or improve its exchange rate. Factors such as inflation, foreign exchange supply, fiscal management and monetary policy will continue to influence the currency’s broader performance.
For now, the timing and scope of any currency refresh remain the responsibility of the Bank of Ghana.
President Mahama said government would continue implementing policies aimed at supporting the cedi, while the central bank determines when and how the currency should be refreshed.
“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.
