Ghana’s Small Coins Losing Value Amid Inflation – Economist Warns
Emmanuel Okine-Botchwey says inflation and currency depreciation are rendering small coins impractical
- Inflation and depreciation are making 10 and 20 pesewa coins practically unusable
- Rejecting coins is illegal under the Bank of Ghana Act
- Economist urges reforms to stabilize the cedi
Economist Emmanuel Okine-Botchwey has raised concerns over the diminishing use of Ghana’s lower denomination coins, warning that their rejection in everyday transactions is both a symptom and a consequence of broader economic challenges such as inflation, currency depreciation, and heavy reliance on imports.
Speaking on Lawson TV/Radio Ghana “Se Sen Show”, Mr. Okine-Botchwey traced the historical evolution of Ghana’s currency, noting that during colonial times, Portuguese trader Don Diago de Azambuja introduced African pounds in the Gold Coast. Post-independence, Ghana established its own currency — the cedi — as a symbol of economic sovereignty.
However, the economist expressed worry over how far the cedi has fallen.
“Today, coins like the 10 and 20 pesewa are rarely accepted in the marketplace,” he observed. “You need about 20 of the 10 pesewa coins to make any meaningful purchase, and carrying that bulk is simply impractical. Naturally, people prefer alternatives.”
He attributed this trend to persistent inflation and the rising cost of living, stating that it is not merely a matter of convenience but a reflection of deeper economic problems. “Our economy is import-driven. We are heavily indebted externally, and that has worsened the depreciation of the cedi,” he added.
Citing the Bank of Ghana Act (2002), Mr. Okine-Botchwey reminded the public that the cedi remains the only legal means for all exchanges of goods and services in the country. “Rejecting 10 and 20 pesewa coins is technically illegal, as they are legal tender,” he emphasized.
But he acknowledged the dilemma, saying that ordinary citizens are also victims of inflation. “We’re all part of the inflation cycle. If we refuse to use the money — especially the coins — then we’re indirectly feeding the problem.”
To restore confidence in the currency and make all denominations relevant again, the economist called for systemic reforms. “We need to tackle inflation head-on, stabilize the cedi, and transition from an import-dependent economy to an export-driven one. Only then can we truly bring value back to every coin in our pockets.”
