The small change in Ghana’s monetary system is quietly losing its place in everyday commerce, raising questions about the long-term relevance of pesewa coins in a modern, inflation-pressured economy. Once an essential component of daily transactions, the 10 and 20 pesewa coins are increasingly being rejected by traders, transport operators and informal sector businesses, reflecting a broader shift in purchasing power and public confidence in low-denomination currency.
Across busy commercial areas in Accra, particularly in traffic intersections and market enclaves, the decline is visible. Street vendors and hawkers, who typically operate at the lowest price points in the economy, now openly refuse to accept these coins. Aunty Nancy, a sachet water seller stationed at a traffic light, captures the sentiment shared by many in the informal sector. “These days, what can you buy with 10 or 20 pesewas? There’s nothing that can be bought at 10 pesewas or 20 pesewas. Even if you accept it, some shops don’t take them when you are buying with it,” she said.
Her observation reflects a practical economic reality. Inflation, which has remained persistently high in recent years, has eroded the real value of Ghana’s smallest denominations. Data from the Ghana Statistical Service shows that cumulative inflation over the past decade has significantly reduced purchasing power, making it nearly impossible to price goods at such low levels. Items that once cost a few pesewas now sell for multiple cedis, effectively rendering coins redundant in pricing structures.
The issue is not merely behavioural but structural. The Bank of Ghana has acknowledged in various policy discussions that low-denomination coins tend to fall out of circulation when their utility diminishes. In its currency management reports, the central bank has consistently noted that coins are most effective when they facilitate transactions and pricing efficiency. When they fail to do so, they are either hoarded, ignored, or discarded by the public.
This phenomenon is not unique to Ghana. Economists often describe it as a natural outcome of inflationary pressures and currency evolution. When the cost of producing coins exceeds their face value or when their purchasing power becomes negligible, economies gradually phase them out, either formally through demonetisation or informally through public disuse. Ghana has experienced this before. The 1 pesewa and 5 pesewa coins, though still legal tender, have virtually disappeared from circulation, serving as a precedent for what may lie ahead for the 10 and 20 pesewa coins.
In transport systems, particularly within the trotro network, the rejection of coins has become more pronounced. Passengers frequently report being asked to round up fares to the nearest cedi or higher denomination note. This informal rounding mechanism effectively sidelines coins, reinforcing their diminishing relevance. For businesses, especially small retailers, the inconvenience of handling coins that cannot be easily recirculated further discourages their acceptance.
Financial analysts argue that the fading use of pesewa coins points to deeper macroeconomic considerations. Sustained inflation reduces the effectiveness of currency subdivisions, while shifts toward digital payments also play a role. Mobile money platforms and electronic transactions, which typically operate in cedi values rather than pesewa increments, are gradually redefining how Ghanaians transact. As digital adoption grows, the need for physical small change continues to decline.
However, the quiet disappearance of coins raises important policy questions. Should the central bank formally withdraw these denominations, or allow market forces to eliminate them organically? There are cost implications on both sides. Minting coins that are rarely used imposes a fiscal burden, yet withdrawing them requires careful public communication to maintain trust in the currency system.
For now, the 10 and 20 pesewa coins remain legal tender, but their practical relevance is steadily eroding. What is unfolding is less a sudden policy shift and more a gradual economic adjustment driven by inflation, market behaviour, and evolving payment systems. If current trends persist, these coins may follow the path of the 1 pesewa and 5 pesewa, becoming relics of a past pricing era rather than functional tools of everyday trade.
In the lived reality of traders like Aunty Nancy, the verdict is already clear. The value of money is ultimately determined not just by law, but by what it can buy. In today’s Ghanaian economy, that value is slipping away from the smallest coins, one transaction at a time.
