Higher notes should’ve been introduced earlier – Pianim

Celebrated economist Kwame Pianim has urged Ghanaians to support the Bank of Ghana’s introduction of higher denominations into the economy.

According to him, the initiative should have been done earlier.

The Bank on Friday, November 29 introduced GH¢100 and GH¢200 banknotes as well as GH¢2 coins.

Mr Pianim cited the practice of quantitative easing in other economies, where the Central Bank pumps additional monies into the economy to boost liquidity.

He questioned why the Bank of Ghana cannot also print more money into the economy.

“Look in Ghana there are certain institutions that are independent. We get competent people to run them. Let’s allow them to run them.”

He questioned the value of the GH¢50 note today in comparison to the dollar and said as a country we are retrogressing.

The currency, according to him, serves as a store of value.

“The Governor of the Bank of Ghana [has] to ensure we have adequate resources for transaction purposes. They are not introducing the new notes to cause inflation. What they are doing is to ensure we do not carry too much money in our pockets.”

Mr Pianim believes the strength of the Cedi against its major trading currencies has dwindled over the years.

He says although the new notes will not in any way impact on the strength of the local currency, it will at least make life easier and simpler for many Ghanaians.

“When things come up, let’s look at it logically. Maybe, the Central Bank Governor should consider GH¢250 notes. Perhaps, this should have been done much earlier.”