The Ghanaian Chronicle has highlighted a growing concern in Ghana, where commercial drivers and traders are refusing to accept lower-denomination coins, effectively creating a quiet form of price inflation. This practice has a direct impact on what Ghanaians pay for goods and services. When a driver or trader refuses to accept small denominations, such as 10 or 20 pesewas, and instead rounds a fare or price upwards, the consumer pays more than the actual or approved price.
The issue is particularly worrying in the transport sector, where the Ghana Private Road Transport Union (GPRTU) recently announced an 8% increase in transport fares. However, some commuters are paying more than the approved adjustment due to the refusal to accept lower-denomination coins. Fares are reportedly being rounded upwards to 10% or even higher. For instance, if an 8% adjustment requires an additional 10 or 20 pesewas, a commuter may be asked to pay an additional GH¢1 instead.
The Chronicle is not suggesting that the refusal to accept small-denomination coins is the sole cause of Ghana's inflation. National inflation is driven by a broader combination of monetary conditions, exchange-rate movements, fiscal developments, supply constraints, and demand pressures. However, the concern is that widespread upward rounding can add to those price pressures. If a commodity costs 80 pesewas but a trader refuses to accept a 20-pesewa coin and charges GH¢1 instead, the consumer has effectively suffered a 20-pesewa price increase.
The cumulative effect of these small increases can significantly impact low-income households. If market women and other traders begin refusing 10 and 20 pesewa coins, prices could increasingly be rounded upwards. An item that should cost 80 pesewas could become GH¢1, not because its underlying cost has increased, but simply because the seller does not want to accept the smaller denomination. This practice could spread beyond transportation and become an unnecessary burden on consumers.
The Government must establish whether transport operators are charging above the approved 8% adjustment. If approved fares are being exceeded in practice, relevant authorities must intervene. An officially announced fare adjustment should mean exactly that. Commuters should not be subjected to additional increases through informal rounding practices. The Ministry of Transport and other relevant agencies should engage the GPRTU to establish the extent of such practices.
The Bank of Ghana should also take an interest in the wider issue of the declining practical use of lower-denomination coins. If coins remain legal tender, consumers should not routinely be disadvantaged because some businesses or transport operators find them inconvenient. The solution cannot be to allow arbitrary upward rounding to become the norm, especially at a time when the Government is seeking to stabilise the economy and contain inflation.
The Chronicle believes Ghanaians are already struggling with the cost of living, and they should not have to pay more simply because a driver or trader does not want to accept the coins that remain part of the country's legal tender. The Government must establish the facts, enforce approved transport fares, and ensure that the country's legal tender is respected. Every avoidable source of price pressure deserves attention to restore the purchasing power of Ghanaians.
Key points
- The refusal to accept lower-denomination coins in Ghana is creating a quiet form of price inflation.
- The practice is particularly worrying in the transport sector, where fares are being rounded upwards.
- The Government must intervene to establish the facts, enforce approved transport fares, and ensure that the country's legal tender is respected.
