The Bank of Ghana has issued a strong warning to traders, transport operators and the general public that refusing to accept pesewa coins in transactions is unlawful and could worsen inflationary pressures in the economy.
The central bank’s caution follows a growing trend across markets and commercial transport systems, particularly in cities like Accra and Tema, where smaller denominations such as 10 and 20 pesewa coins are increasingly being rejected during everyday transactions.
According to officials, all coins and banknotes issued by the Bank of Ghana remain legal tender and must be accepted without exception. The regulator stressed that there is no justification for refusing any denomination, from one pesewa up to the two-cedi coin, as they are all valid forms of payment under Ghanaian law.
The central bank has warned that this practice is not just a minor inconvenience but a serious economic issue. When traders refuse coins, they often round up prices instead of giving exact change, a habit that gradually pushes prices higher across the market. Over time, this contributes to what economists describe as “hidden inflation,” where consumers end up paying more than the actual value of goods and services.
Officials at the Bank of Ghana have emphasised that coins play a critical role in maintaining price accuracy. Without them, the pricing system becomes distorted, especially for low-value transactions. This distortion, when repeated across thousands of daily transactions, can significantly affect overall price stability in the economy.
Beyond inflation concerns, the rejection of coins also undermines confidence in the national currency. A functioning monetary system relies on public trust that every denomination issued by the central bank holds value and can be used freely. When certain coins are sidelined, it weakens that trust and creates inefficiencies in the payment system.
The Bank of Ghana has also pointed out the practical benefits of coins. Unlike paper notes, coins have a longer lifespan, which reduces the cost of printing and replacing currency. By rejecting coins, the public indirectly increases the financial burden on the state to produce more notes, adding another layer of economic inefficiency.
Despite these warnings, resistance to coins continues to grow, largely driven by convenience and perception. Many traders argue that customers themselves reject coins when given as change, creating a cycle where neither buyers nor sellers want to handle them. Others cite the inconvenience of carrying large quantities of low-value coins, especially when prices are no longer structured around smaller denominations.
However, the central bank maintains that such concerns do not override the legal requirement to accept all forms of currency. The refusal of coins in transactions is considered a violation of legal tender rules and could attract sanctions if enforcement is intensified.
The issue also highlights a broader challenge within Ghana’s informal economy, where pricing practices are often flexible and loosely regulated. In such an environment, small behavioural changes, like rejecting coins, can have outsized effects on inflation and consumer welfare.
Financial analysts argue that addressing the problem will require more than just warnings. Public education, enforcement of currency laws and adjustments in pricing systems may all be necessary to restore the proper use of coins in daily transactions.
For now, the message from the Bank of Ghana is clear: pesewa coins are still money, not optional extras. Ignoring them may seem harmless in the moment, but at scale, it quietly reshapes prices and adds pressure to an already sensitive economic environment.