The Bank of Ghana has cautioned traders and the public against refusing lower-denomination coins, warning that such practices could undermine price stability and contribute to inflationary pressures in the economy.

A publication of questions from its March 2026 bi-monthly engagement with the media, the central bank said coins such as the one pesewa, five pesewas and 20 pesewas remain legal tender and must be accepted in all transactions.

It stressed that under the Currency Act, 1964 (Act 242), no individual or business is permitted to reject officially issued currency when settling payments.

The Bank’s response follows persistent reports that some traders, particularly in markets and the transport sector, are increasingly unwilling to accept smaller coins, often opting instead to round up prices or impose higher minimum charges.

According to the Bank, this practice distorts pricing and can gradually push up the cost of goods and services.

It explained that while the use of smaller denominations tends to decline over time due to inflation and reduced purchasing power, their rejection outright poses a risk to the broader economy.

The Bank noted that such behaviour could lead to systematic price rounding, which, over time, contributes to inflation and weakens transaction efficiency.

The central bank emphasised that ensuring the continued circulation of coins is not only a matter of supply, but also public acceptance and compliance with legal tender regulations.

It said traders, transport operators and market associations have a responsibility to honour all denominations in everyday transactions.

To address the situation, the Bank said it is intensifying public education campaigns to raise awareness about the legal status of coins and the economic consequences of rejecting them.

It added that it would deepen engagement with key stakeholders across the informal sector to encourage behavioural change.

The Bank also indicated that it is working closely with financial institutions to improve the distribution and recirculation of coins within the economy, ensuring that they remain accessible for daily transactions.

In addition, it has issued public warnings declaring the rejection of coins illegal and has stepped up communication on how the practice contributes to inflation through price rounding.

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

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Bank of Ghana warns traders: Receiving small coins is illegal and causes inflation

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