Editorial: Traders & Troto Mates Must Beware; Pesewas Are Still Legal Tender

For some time now, The Chronicle has observed an increasingly common practice in Accra, the refusal by some traders, transport operators, passengers and trotro mates to accept 10 pesewa and 20 pesewa coins, even though these coins remain legal tender in Ghana. Street vendors decline them outright, while in public transport, passengers are often compelled to add extra money or lose their change, because the coins are not accepted.

This practice has serious legal and economic implications. Under the Bank of Ghana Act, all coins issued by the Central bank remain legal tender unless officially withdrawn. No individual has the authority to reject them. More importantly, refusing small coins causes consumers to pay more than the stated price or approved fare, which quietly increases the real cost of goods and transport.

While inflation and reduced purchasing power explain why these coins are viewed as inconvenient, rejecting them is not a harmless response. It shifts the financial burden onto consumers, particularly low-income earners and introduces a form of everyday inflation driven by overpayment rather than formal price changes.

This situation is not a matter of convenience; it is a legal and economic problem. The Bank of Ghana Act establishes the cedi as Ghana’s unit of currency and empowers the central bank to issue notes and coins for circulation.

Until a denomination is formally withdrawn, it remains legal tender. Rejecting it is unlawful. Individuals do not have the discretion to choose which parts of the national currency they will recognise.

Beyond legality, the economic impact of this behaviour deserves serious attention. Importantly, The Chronicle is not suggesting that official prices or transport fares have been adjusted to round figures. What is happening is more subtle but equally damaging. When a trader or trotro mate refuses to accept small coins, the consumer is often left with only two options, add extra money or lose their change. In either case, the consumer ends up paying more than the actual price or approved fare.

This is where inflationary pressure comes in. Inflation is not only about formal price increases announced by sellers. It is also about the real amount of money consumers are forced to spend for the same goods and services.

When thousands of people every day are compelled to top up payments or surrender small change because legal coins are rejected, the average cost of living quietly rises. Consumers are spending more, not because prices have officially changed, but because the system no longer allows exact payment.

This burden falls most heavily on low-income Ghanaians. Market shoppers, students, pensioners and daily commuters rely on small denominations to manage tight budgets. For them, losing 10 or 20 pesewas repeatedly is not trivial. Over a week or month, these losses add up. What appears insignificant in a single transaction becomes meaningful when multiplied across daily life. This erosion of purchasing power is one of the practical effects of inflation.

The refusal of coins also undermines fairness and discipline in everyday commerce. It creates inconsistency, arguments and confusion. Two people paying the same fare may end up paying different amounts depending on whether they have coins or notes. Such unpredictability weakens trust between buyers and sellers and damages confidence in the currency itself.

It is important to place this issue in proper context. Inflation and the declining value of money help explain why small coins are seen as inconvenient. However, economic pressure does not justify ignoring the law or transferring costs to consumers informally. The Bank of Ghana has previously reminded the public that rejecting coins is illegal and warned that it undermines price stability efforts. Still, enforcement and education must extend beyond official statements.

Transport unions, market associations, and local authorities have a role to play in correcting this behaviour. Public education is equally critical. Many people simply do not realise that refusing small coins causes consumers to pay more and contributes to rising living costs.

A currency only works when it is respected in full. The 10 pesewa and 20 pesewa coins may be small, but rejecting them quietly makes life more expensive for ordinary Ghanaians. That is a cost the country should not ignore.

The post Editorial: Traders & Troto Mates Must Beware; Pesewas Are Still Legal Tender appeared first on The Ghanaian Chronicle.

Read Full Story