Wednesday, 08 July

GHS100, GHS 200 notes senseless – Adongo

Member of Parliament (MP) for Bolgatanga Central, Isaac Adongo

The Member of Parliament (MP) for Bolgatanga Central, Isaac Adongo thinks there is no tangible reason for the introduction of GHS100 and GHS200 banknotes by the central bank.

He believes there is an ulterior motive for the launch of the notes which he said was not necessary at a time tackling other challenges in the financial sector should be of a higher priority.

“If you consider the action that has just been taken by the Bank of Ghana, it is quite clear that there is a motive other than what is being told the people of Ghana because whatever has been put out there simply doesn’t make sense. We are in an economy where we are struggling to bring about a cashless economy,” he said in reaction to the announcement of the new high-value banknotes.

“This actually tells of a government that is in total disarray. There is a very serious policy contradiction in terms of what the government proposes for ensuring a smooth running of the economy and the actions that are being taken by the government,” he said.

The Governor of the central bank announced the introduction of the new notes at a press conference in Accra on Friday, 29 November 2019 with the explanation that the move is aimed at addressing the deadweight burden on the economy from the past inflation and cedi depreciation.

Speaking at the introduction of the new notes, Dr Ernest Addison urged the public not to misinterpret the introduction of the high-value notes to mean a shift from the central bank's policy of pursuing a cashless society.

Meanwhile, the introduction of the notes has divided public opinion with some analysts arguing that it could cause a rise in inflation while other economists hold a contrary view.