Cedi note abuse is emerging as more than a cultural issue; it is becoming a serious fiscal and economic concern. From spraying money at social events to turning banknotes into decorative bouquets, the mistreatment of Ghana’s currency is costing the state hundreds of millions of cedis annually. As the Bank of Ghana intensifies warnings and policy responses, the deeper question is why cedi note abuse matters for businesses, households and the broader economy.
At the centre of the issue is the rising cost of printing and replacing damaged currency. Over the past decade, the Bank of Ghana has recorded sharp increases in expenditure on banknote printing and coin minting. In 2024 alone, the central bank spent close to one billion cedis on currency production, reflecting a surge in demand for physical cash and the need to replace worn-out notes. A significant portion of this burden is linked to cedi note abuse, which shortens the lifespan of currency in circulation.
The Economic Cost of Cedi Note Abuse
Cedi note abuse translates directly into higher operational costs for the central bank. Ghana does not print most of its banknotes locally. Production is outsourced to specialised security printing firms abroad, meaning costs are often denominated in foreign currency. When the cedi weakens against major currencies, the expense of printing new notes rises further.
Every mutilated or defaced note must be withdrawn and replaced. This process involves design, security features, logistics and distribution. These expenses are recognised in the central bank’s financial statements and ultimately affect its profitability and balance sheet. While the public may see damaged notes as harmless, cedi note abuse diverts funds that could otherwise support public goods such as healthcare, education or infrastructure.
For businesses, especially banks and retailers, the consequences are practical and immediate. Automated Teller Machines frequently jam when fed with crumpled or stapled notes, disrupting service delivery. Retailers must sort through soiled or torn bills, rejecting those unfit for circulation. These inefficiencies increase transaction time and operational costs, which can translate into higher service charges for consumers.
Cedi Note Abuse and the Informal Economy
The informal sector, which remains heavily cash-dependent, bears a disproportionate share of the impact. Market traders, transport operators and small-scale vendors rely on physical currency for daily transactions. When clean notes become scarce due to cedi note abuse, business slows. Vendors may refuse damaged bills, leading to disputes and lost sales.
Households also feel the strain. In rural areas where digital infrastructure is limited, access to clean, acceptable notes is essential. A scarcity of fit currency can disrupt everyday commerce, from purchasing food to paying school fees. Cedi note abuse therefore aggravates financial exclusion, particularly in communities with limited access to electronic payment alternatives.
Enforcement and Behavioural Change
The Bank of Ghana has cited provisions in existing legislation that criminalise the defacement and misuse of currency. The central bank’s Clean Notes Policy aims to promote responsible handling of money, yet enforcement has historically been inconsistent. The recent public warnings against cash bouquets and decorative use of banknotes signal a tougher stance.
Stronger enforcement could act as a deterrent, but sustainable change requires a shift in social norms. In many communities, spraying money at weddings or funerals is seen as a symbol of generosity or status. Tackling cedi note abuse therefore demands not only prosecutions but also education campaigns that reframe currency as a national asset rather than a disposable prop.
Digital Payments as a Structural Response
One of the most strategic responses to cedi note abuse lies in accelerating digitalisation. By expanding electronic payment systems and promoting the eCedi, the Bank of Ghana can reduce reliance on physical cash. Lower cash usage would mean fewer notes in circulation and less exposure to damage.
For businesses, increased digital adoption enhances transparency, reduces cash-handling risks and cuts costs related to transporting and storing money. For households, digital platforms can offer safer and more convenient transaction options, provided that fees remain affordable and network coverage improves.
However, digitalisation must be inclusive. Transaction levies or high service charges could discourage adoption and unintentionally sustain the culture of cash dependence. Policymakers must balance revenue considerations with the long-term benefits of reducing cedi note abuse through technological transformation.
Cedi note abuse may appear trivial at social gatherings, but its economic ripple effects are substantial. The rising cost of currency printing reflects not only inflation and cash demand but also the accelerated deterioration of notes in circulation. For the Bank of Ghana, this means mounting operational expenses. For businesses, it means service disruptions and inefficiencies. For households, it can mean inconvenience, disputes and limited access to clean money.
Addressing cedi note abuse requires a multi-layered strategy: firm legal enforcement, public education, improved banknote durability and aggressive promotion of digital payments. More importantly, it demands a cultural shift in how Ghanaians perceive their currency.
The cedi is more than a medium of exchange; it is a symbol of economic sovereignty and national identity. Protecting it from abuse is not merely the responsibility of the central bank. It is a shared obligation between government, businesses and citizens. If cedi note abuse continues unchecked, the financial cost will keep rising. But if behavioural change takes root, Ghana stands to save significant resources while strengthening the integrity of its monetary system.