There is a growing trend in Accra’s markets, where vendors are rejecting small denomination coins and the 1 cedi note as a legal tender.
The Bank of Ghana introduced the 10 and 20-pesewa coins as part of the redenomination of the cedi in 2007.
Years later, these coins seem to have fallen out of use in everyday transactions.
Market women and vendors in Accra’s markets are deliberately rejecting10 and 20-pesewa coins, as well as the 1 cedi note.
The reasons for rejection vary.
Some vendors claim that the coins are too small and inconvenient to handle, while others say that the 1 cedi note is prone to tearing and therefore not acceptable.
And for customers and traders alike, the rejection is causing difficulties.
3news’ Judith Brown visited the Accra Central market, where vendors expressed frustration.
Auntie Fosti sells kitchen utensils in the market. She said, “sachet water sellers have refused to take the coins. I don’t understand why. They say it will get missing.”
Mavis, another vendor said, “They don’t take the coins although government hasn’t prohibited it.”
Some vendors say, they have accumulated large amounts of these coins, which they cannot use due to the widespread rejection.
“Even children don’t take the coins. They even reject the 1 cedi note surprisingly” one said. The rejection of these coins is also affecting prices.
Traders are adding 50 pesewas and over to the prices of goods, especially water, causing prices to remain on the high side.
“Prices have gone up because vendors add 50 pesewas and above for profit.” According to Helen, a sachet water vendor, they are not to blame.
“We the sachet water sellers accept the money but others don’t. I have 20-pesewa coins amounting to 20 cedis on me and I can’t even spend it.” She said.
The situation however is not new. It is recalled that the 1 pesewa coin was phased out due to rejection on the market, and till today it remains unused.
For some vendors, government must intervene to ensure these coins do not phase out.
“It’s a problem and the law must work”, one said. But what does the law say.
Private legal practitioner Christian Malm Hesse explained that the law prohibits the rejection of the legal tender.
“Under no circumstance can a person within the jurisdiction of Ghana decide not to accept it. From the highest denomination to the lowest pesewa.The law sees it as an offense attracting imprisonment or a fine or both. Bank of Ghana should also carry out market surveys to see to whether or not the coins meet currency value,” he said.
Until drastic measures are taken, the 10 and 20-pesewa coins remain on the brink of extinction.
