A customer buys an item for GH₵10.50, hands over GH₵11 and expects 50 pesewas in change. The seller says there is no change. The customer accepts it, perhaps reluctantly, and moves on. In another shop, an item that could have been priced at GH₵10.50 is simply marked GH₵11 because the seller knows the coins are unlikely to be accepted.
Individually, the difference looks small. Repeated across thousands of daily transactions, however, the practice raises a bigger economic question: could Ghana’s rejection of lower denomination coins be quietly pushing the prices consumers pay upward?
The Bank of Ghana says there is a link worth taking seriously. In a March 2026 response to questions from the media, the central bank said the rejection of lower denomination coins, including the one pesewa, five pesewas and 20 pesewas, “can result in the rounding up of prices and the imposition of higher minimum prices, which may undermine price stability.”
This is not the same as saying that rejected coins are responsible for Ghana’s inflation. The distinction matters. Ghana’s year-on-year consumer inflation stood at 4.6 per cent in July 2026, according to the Ghana Statistical Service, reflecting the overall movement in prices across the economy. Coin rejection is a much narrower issue, operating at the level of individual transactions and pricing decisions.
The concern is nevertheless highly relatable. In markets, shops, taxis and other everyday transactions, the smaller denominations have gradually become less visible. A trader who expects customers to reject coins may avoid prices that require them. A consumer who does not want to carry coins may also prefer a rounded price. Over time, the interaction between the two can make prices such as GH₵10.50, GH₵11.20 or GH₵12.70 less attractive, encouraging sellers to set prices at GH₵11, GH₵12 or GH₵13 instead.
This rejection is particularly visible in Ghana’s informal economy, where the smallest coins often encounter resistance even in transactions that involve very small amounts. Provision shop operators, pure water sellers moving through traffic and even some individuals or security men who watch over parked vehicles may refuse one pesewa, 10 pesewas or 20 pesewas when offered as change or even as a tip. A customer may hand over the coins only to have them pushed back. In some cases, a seller may return the money altogether and take back the product. For pure water sellers in traffic, the reluctance can be even more direct. Some may refuse to sell to a customer they know is likely to pay with the coins, explaining that other customers often give them the same denominations as change and they are left unable to spend them. What appears to be a trivial inconvenience therefore becomes a daily economic behaviour, reinforcing the perception that these coins have little or no practical value even though they remain legal tender.
The central bank has acknowledged that part of the problem is economic. It says the practical use of very small denominations naturally declines as inflation reduces their purchasing power, shifting demand towards higher denominations. The problem becomes more serious when a denomination remains legal tender but is no longer readily accepted in everyday trade.
The Bank of Ghana’s position is unequivocal. “All banknotes and coins issued by the BoG remain valid for the settlement of debts and the payment of goods and services,” Governor Ernest Addison said in response to concerns about the rejection of smaller denominations.
That means the issue is not simply about coins being inconvenient. It is also about the integrity and efficiency of Ghana’s payment system. If a consumer is expected to pay GH₵11 for something priced at GH₵10.50 because the 50 pesewa coin is unwanted, the additional 50 pesewas is a real cost to that consumer, even if it is too small to attract attention.
The effect can become more significant when such rounding occurs repeatedly. A few pesewas added to one purchase may appear insignificant. Across food, transport, household goods and other frequent transactions, however, repeated upward rounding can gradually increase the amount households spend.
For small businesses, the issue also has another side. Traders need convenient denominations to give accurate change, while customers need confidence that the price they see is the price they will actually pay. When coins disappear from circulation or are refused, both sides lose some of that flexibility.
The solution cannot rest entirely on telling Ghanaians to accept coins. The Bank of Ghana says it will intensify public education and engagement with traders, transport operators and market associations, while working with financial institutions to improve the distribution and recirculation of coins. It also wants pricing practices that allow appropriate denominations to be used in everyday transactions.
Businesses, too, have a role. Where a product costs GH₵10.50, consumers should not have to pay GH₵11 simply because the smaller denomination has become socially inconvenient. At the same time, consumers must recognise that coins remain part of the national currency and use them rather than treating them as worthless.
The broader lesson is simple. When a country stops using part of its currency, the cost does not necessarily disappear. It can show up somewhere else, including in the price consumers pay.
For Ghana, restoring confidence in the humble pesewa may therefore be about more than finding change. It could also be about protecting the accuracy of everyday prices, improving transaction efficiency and ensuring that the fight for price stability is not undermined, one rounded-up purchase at a time.
