Ghana spent GHS 986.88 million on currency printing in 2024

Physical abuse of the cedi by citizens is driving up the cost of currency replacement and impacting the national economy.

Ghana spent GHS 986.88 million on printing its national currency in 2024. This figure represents a significant 47.00% increase from the GHS 354.53 million spent in 2023. The escalating cost is primarily attributed to the widespread physical abuse of the cedi by citizens, forcing the Bank of Ghana to frequently replace damaged notes. This abuse, which includes spraying cash at social events, stapling notes, and general mishandling, has transformed into a substantial economic burden for the nation. It diverts public funds that could otherwise support critical economic priorities. The problem also affects the banking system, as mutilated notes can jam Automated Teller Machines (ATMs) and disrupt cash handling operations. The issue is not merely cultural but has profound economic and legal implications for Ghana. The constant need to replace worn-out currency, which is largely printed by specialized foreign security printers, drains national resources. This situation undermines confidence in physical cash and tarnishes Ghana's image on the global stage. Dr. Richmond Akwasi Atuahene, a Banking and Corporate Governance Consultant, highlighted this problem in a recent policy paper. He emphasized that the cedi is legal tender and a symbol of national identity, not merely a ceremonial item or party decoration. The Bank of Ghana has intensified its warnings against the misuse of cedi notes and the refusal to accept coins, reminding the public that such actions are punishable under Ghanaian law. This persistent problem means that the Bank of Ghana must allocate substantial resources to currency management. The GHS 986.88 million spent in 2024 on printing currency could have been invested in infrastructure, education, or healthcare. The continuous cycle of replacing prematurely damaged notes is ultimately financed by the Ghanaian public through taxes and other revenue streams. Historical data further illustrates the rising cost of currency issuance. In 2020, the central bank spent GHS 337.50 million on printing notes, an increase from GHS 306.20 million in 2019. Total currency issuance expenses reached GHS 347.80 million in 2019. These figures underscore a consistent upward trend in expenditure related to maintaining the physical currency supply. The paper by Dr. Atuahene links part of this increase to the introduction of higher-value denominations and broader operational costs in currency management. However, the core problem remains the public's treatment of the cedi. Practices like throwing notes in the air, stepping on them, or molding them into decorative items like money bouquets contribute significantly to their premature degradation. Ghanaian law explicitly prohibits soiling, spraying, stamping, writing on, mutilating, piercing, squeezing, tearing, or stapling currency. The Currency Act, 1964, Act 242, as amended, makes these actions illegal. Despite these legal provisions, the abuse of the cedi has become normalized in social settings, often defended as expressions of affection or celebration. The implications are far-reaching. The continued mistreatment of the cedi will likely lead to further increases in currency printing costs, placing additional strain on the national budget. Decision-makers must consider more robust public awareness campaigns and stricter enforcement of existing laws to protect the national currency. The public needs to understand that every damaged note represents a tangible cost to the nation and its economic well-being.

Ghana spent GHS 986.88 million on currency printing in 2024

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