…Gp5 & Gp1 go missing in spite of BoG directive
By Cecil MENSAH
A recent directive by the central bank to the banking community to release lower-denomination coins onto the market seems not to have been complied with yet.
The Bank of Ghana (BoG) had maintained when it unveiled the modified security features of the five Ghana Cedis bank note to mark its 60th anniversary that the Gp5 and Gp1 remained legal tender until otherwise decided by the bank.
The central bank’s insistence was a reaction to numerous reports that two lower-denomination coins were gradually going out of circulation because many people were refusing to accept them for transaction.
It is alleged that small and medium-sized provision shop operators are declining to accept the Gp5 and Gp1 coins because their customers would not accept them when used for change.
Checks by Business Day Ghana at various coin-vending hubs in Accra suggest a lukewarm attitude on the parts of Ghanaians toward accepting the Gp5 and Gp1 coins.
The situation is pronounced in areas like Abeka-Lapaz, Kwame Nkrumah Circle, Weija, Madina, Tudu, Kaneshie and Tema Station in Accra which notable locations are offering transport services to the various peri-urban areas in the Greater Accra metropolis.
Operators of coin exchange points express frustrations on how they have to be insulted any time they advance the Gp5 and Gp1 coins to a driver’s mate.
Others claim banks do not even serve them the two lower-denomination coins.
Akwasi Adjei (location withheld) narrated that at the moment many people do not find use for Gp5 and Gp1 as even sachet water cannot be purchased with them.
Kewku Nimo, a driver’s mate, also narrated that often passengers fight him any time he gives them the Gp5 as change.
He said sometimes heated debates will ensue if a driver’s mate insists that the currency is legal as passengers, on the other hand, will argue that they have no use for it.
He said this has resulted in transport operators rounding up fares to one Ghana Cedi when the fare should have been, for example, eighty Pesewas.
Shopping malls different
This paper’s investigations have revealed that the only institutions that comply with the BoG directives are the various shopping malls operating in the country.
Clients of Melcom, Accra Mall, A and C Mall in East Legon, Achimota Mall as well as Junction Mall at Nungua are constantly bombarded with the one Pesewa coin anytime they visit the mall to do their shopping.
It has been observed that these institutions even quote their prices a few pesewas lower and usually give change with the lower-denomination coins.
It has further been observed by Business Day Ghana that in these bigger shops, customers do not refuse the coins; instead, they drop them the donation boxes made available in the shops.
Stanbic & GN banks
Some coin vendors mentioned Stanbic Bank and GN Bank as some of the banks, which were allegedly not releasing the coins to them.
The Corporate Affairs Director of Groupe Ndoum (GN), Richard Keelson, when contacted told this reporter that he may have to seek permission from the Chief Executive Officer of the GN Bank before speaking to the issue. After more than a month, he is yet to speak to the matter officially.
Officials of Stanbic Bank have refused to speak on the matter.
However, a source close to the Corporate Affairs Unit of Stanbic Bank told Business Day Ghana that issue of coins is dicey.
According to the source, the issue in the country is attitudinal as many Ghanaians are rejecting the coins even though the banks are dispensing them.
As well, the source blamed the situation on inflation, saying it has compelled many Ghanaians in the buying and selling sector of the economy to round up their prices.
“It is interesting how Ghanaians behave in the country but are quick to subject themselves to the laws of some foreign countries when they travel there,” he observed.
Meanwhile, an email that was sent to the Director of Corporate Affairs of the Central Bank, Mr. Bernard Otabil, and copied to the corporate Affairs Department about the seeming flouting of its directives have not been responded to since mid-March.
