Friday, 13 December

New banknotes’ll cut high transaction cost – BoG

Business
The new notes will cut high transaction cost

The introduction of higher denominations will reduce the high cost of transaction in making high-valued purchases in the country’s economy, the central bank has said.

 The Bank of Ghana (BoG) introduced GHS100 and GHS200 notes on Friday, 29 November 2019.

 The Governor, Dr Ernest Addison, made the announcement at a press conference where the GHS2 coin was also introduced.

 Speaking at the event, Dr Addison explained that the new notes will significantly reduce the deadweight burden and high transaction cost in making high-valued purchases in the country’s economy.

 “These new higher value denominations will only restore partially, the dollar value of the higher denomination GHS200 to about USD40, not quite close to levels in 2007, but high enough to significantly reduce the deadweight burden and high transaction cost in making high-valued purchases in a cash-based economy like Ghana’s”, Dr Addison said.

Source: classfmonline.com