A banking policy expert has called on the Bank of Ghana to crack down on the rejection of cedi coins while accelerating the country's transition to digital payments, arguing that both measures are essential to protecting Ghana's currency and reducing the cost of cash management.
In a policy paper on currency protection, Dr. Richmond Akwasi Atuahene says the refusal to accept valid coins has become more than an inconvenience. He describes it as a direct challenge to Ghana's legal tender system.
Coin Rejection Hurts Financial Inclusion
The paper notes that Ghanaian law recognises all coins and banknotes issued by the Bank of Ghana as legal tender.
Rejecting 1 pesewa, 5 pesewa, 10 pesewa, 20 pesewa, 50 pesewa, GH¢1 and GH¢2 coins can attract fines or imprisonment under the Currency Act.
Dr. Atuahene argues that the practice particularly affects low-income consumers who depend on small denominations for daily transactions.
"If traders and consumers can arbitrarily decide which legal denominations to accept, then the state's control over legal tender becomes weaker," the paper states.
The consultant is urging the central bank to move beyond issuing public notices by working closely with law enforcement agencies to prosecute offenders who reject coins or deliberately damage currency.
Digital Payments and e-Cedi
The paper also links currency protection to Ghana's digital finance agenda.
It recommends that the Bank of Ghana speed up the rollout of the e-Cedi while encouraging wider use of mobile money, internet banking, cards and interoperable payment platforms to reduce dependence on physical cash.
Dr. Atuahene believes digital transactions can lower the costs associated with printing, transporting and replacing banknotes. At the same time, he cautions that stronger cybersecurity, consumer protection and lower transaction costs will be needed to build public confidence.
The paper further advocates greater circulation of coins, saying they last significantly longer than paper notes and offer better long-term value.
However, that strategy, it argues, will only succeed if businesses, transport operators and consumers are willing to accept coins as lawful payment in everyday transactions.
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