According to the BoG’s annual report, this includes money spent on printing the new notes of GHC100 and GHC200.
The amount used represents a 108% increase in expenditure for printing new notes when compared to 2018. In 2018, the government spent GHC147million.
The report stated that there are some GHC276 million and GHC149 million of the GHC200 and GHC100 notes in circulation respectively. The coins and notes issued by the central bank increased to GHC31.5 billion in 2019 from GH¢20.5 billion in 2018.
The report indicated that the GHC50 notes are in circulation than any other denomination. The GHC20 denomination is the second note circulating the most. It stated that over GHC5.9 billion and GHC5 billion worth of the GHC50 and GHC20 notes respectively are available on the market.
When the BoG introduced the new higher denominations in 2019, many thought it was not necessary since the government was putting measures in place to build a cashless economy.
Others argued that the printing of the new note will increase inflation. But the Governor of the Central Bank, Dr Ernest Addison, said it was necessary to print the new notes due to a shift in demand for higher denomination notes as the GHC50 and GHC20 account for about 70% of the total demand.
“The introduction of these high-value notes should not be misinterpreted to mean a shift away from the Central Bank's policy of pursuing a cashless society and promoting the use of electronic modes of payments. While vigorously pursuing financial inclusion by accelerating the migration to e-payment platforms, we are also mindful of the relevance of cash in our day-to-day dealings.
Undeniably, cash still remains the preferred medium of payment by the large informal sector in the country. This is why we continue to pay attention to enhancements in the structure, security features, and management of cash within the economy. This will stay with us for some time,” Dr Addison said at the launch of the new denominations.