Joyce Larbie
The Convention People’s Party (CPP) has expressed concern over the growing rejection of pesewa coins in commercial transactions, warning that the practice is contributing to “silent devaluation” of the cedi and worsening inflationary pressures in the country.
In a press statement issued by its Finance Desk and signed by the Acting National First Vice Chairperson for Finance, Joyce Larbie, the party said the refusal by traders, trotro drivers and sections of the public to accept 5 pesewas, 10 pesewas and 20 pesewas coins was undermining confidence in the national currency.
According to the CPP, what many consider a minor market practice is in reality “a direct attack on the integrity of the cedi and a hidden driver of inflation that hurts the poorest Ghanaians most.”
The party argued that the rejection of small denominations forces prices upward through arbitrary rounding of prices and transport fares.
It cited examples where sachet water prices moved from 20 pesewas to 50 pesewas and are now edging toward 70 pesewas, while transport fares fixed at GH¢4.25 are often charged at GH¢4.50 because drivers refuse to return 20 pesewas change.
“This is not driven by production or fuel costs, but by a market that no longer accepts the coins designed for fair pricing. The result is cost-push inflation created by our own hands,” the statement said.
The CPP further contended that the practice was weakening the effectiveness of the Bank of Ghana’s (BoG’s) monetary policy measures aimed at stabilising inflation and supporting the cedi.
The party referenced the BoG’s May 2026 Monetary Policy Committee decision to maintain the policy rate at 14 percent and introduce a uniform 20 percent cash reserve ratio effective June 4, 2026.
According to the statement, those measures depend on the proper circulation of all currency denominations.
“When traders and drivers reject pesewas, they shrink the effective money supply at the retail level and create inflation the MPC did not target. Monetary policy cannot transmit properly if the smallest units of our currency are abandoned,” it stressed.
The CPP warned that treating the pesewa as worthless sends dangerous signals about the credibility of the cedi itself.
“A currency is only as credible as its smallest unit. When the pesewa is treated as worthless, it signals instability in the cedi itself,” the party stated.
It added that the trend weakens public confidence in the local currency, encourages rapid price adjustments in foreign exchange terms and deepens the cycle of depreciation and inflation.
The party also noted that low-income households bear the greatest burden from the rejection of pesewa coins because they rely heavily on public transport and small-unit purchases.
“The inability to use 5p, 10p and 20p coins means they pay more for the same quantity of goods and the same journey. This is an invisible tax on the vulnerable,” the statement added.
The CPP consequently called on the Bank of Ghana not to discontinue the printing and circulation of pesewa coins, insisting that the solution lies in enforcing their use rather than abandoning them.
It urged the Ministry of Finance and the Attorney General’s Department to reaffirm the legal tender status of all cedi and pesewa notes and coins under the Bank of Ghana Act and apply sanctions where necessary against those who systematically reject them.
The party also appealed to market associations, traders and transport unions, particularly the GPRTU, to direct members to accept all denominations and provide exact change to customers and commuters.
In addition, the CPP encouraged members of the public to insist on receiving change in all denominations and to report persistent rejection of coins to the Bank of Ghana’s consumer hotline.
“Ghana cannot fight inflation while we discard the foundation of our currency. A nation that ignores its pesewas will soon find it cannot defend its cedis,” the statement concluded.
By Ernest Kofi Adu