GCB holds workshop on cedi re-denomination

Nkwanta, Feb 12, GNA - Mr Nathan Neequaye, an official of the Nkwanta branch of the Ghana Commercial Bank, has said the re-denomination of the cedi would free the economy.

He said with continued commitment to prudent and disciplined economic policies, it should serve as a store of value for all, both within and outside the banking system.

Mr. Neequaye was speaking at a one-day workshop on the re-denomination of the cedi for chiefs, assembly members and opinion leaders of the Nkwanta District at Nkwanta.

He said appropriate conditions for the exercise had arisen due to sound macro-economic stability, falling inflation and interest rates and the restoration of the cedis role as a store of value to cushion external reserves.

Mr. Neequaye said the current note regime placed a significant burden on the economy.

He said this comes in several forms such as the high costs of transaction at the cashiers, general inconvenience and high risks involved in carrying loads of currency for transaction purposes and increasing difficulty in maintaining bookkeeping and statistical records.

He said its benefits include the re-introduction of the culture of using coins, facilitate the use of vendor machines and promote tourists' expenditures and the reduction in the volume of transactions. Mr. Joseph Booker Denteh, Nkwanta District Chief Executive urged participants to take the exercise seriously.

During an open forum participants questioned the prudence of the re-denomination exercise against the backdrop of the issuance of the ECO throughout the West African Monetary Zone in 2009.