Bank of Ghana warns against rejection of pesewa coins, citing inflation risks

The Bank of Ghana (BoG) has issued a stern warning to traders and the public against the rejection of lower-denomination coins, emphasizing that such practices are illegal and risk fueling inflationary pressures within the economy.

In a publication from its March 2026 bi-monthly media engagement, the central bank reaffirmed that coins, including the one pesewa, five pesewas, and 20 pesewas, remain legal tender and must be accepted for all transactions. The BoG stressed that under the Currency Act, 1964 (Act 242), no individual or business is permitted to refuse officially issued currency when settling payments.

The directive follows persistent reports of traders, particularly in markets and the transport sector, increasingly rejecting smaller coins. This has led to practices such as rounding up prices or imposing higher minimum charges. According to the central bank, such actions distort pricing mechanisms and can gradually escalate the cost of goods and services.

While acknowledging that the use of smaller denominations naturally declines over time due to inflation and reduced purchasing power, the BoG warned that their outright rejection poses broader economic risks. The practice of systematic price rounding, the bank noted, can contribute directly to inflation and undermine transaction efficiency.

The central bank emphasized that ensuring the continued circulation of coins relies not only on supply but also on public acceptance and compliance with legal tender regulations. It called on traders, transport operators, and market associations to honor all denominations in daily transactions.

To address the issue, the Bank of Ghana announced it is intensifying public education campaigns to raise awareness about the legal status of coins and the economic consequences of their rejection. It also plans to deepen engagement with key stakeholders in the informal sector to encourage behavioral change.

Additionally, the central bank said it is collaborating with financial institutions to improve the distribution and recirculation of coins, ensuring their availability for everyday use. The BoG has also issued public warnings declaring the rejection of coins illegal and is promoting the durability and cost-effectiveness of coins as a sustainable alternative to frequently replaced lower-value banknotes.

The central bank stated that these combined measures are aimed at maintaining efficient currency circulation, safeguarding price stability, and ensuring that all forms of legal tender serve their intended purpose in the economy.