- Take Mutilated Currency to Commercial Banks, Do Not Repair It — BoG
The Bank of Ghana has warned the public against taping, glueing, stapling or rejoining damaged cedi banknotes, saying the practice compromises the currency and could result in financial losses.
The central bank issued the warning after a social-media video showed individuals repairing torn and soiled banknotes with adhesive tape for recirculation as a business activity.
“The Bank of Ghana strongly cautions the public against this practice,” the regulator said in a statement issued on October 7.
It said no individual or business should repair, rejoin or alter mutilated banknotes for reissuance or circulation.
“The Ghana cedi banknote is legal tender and an important national symbol,” the Bank said. “Such practices undermine the integrity of the currency and may affect its acceptability and proper processing within the cash cycle.”
The intervention draws attention to the risks created when damaged notes are privately reconstructed and returned to circulation without examination by the appropriate financial institution.
Banknotes repaired with adhesive tape, staples or glue may appear usable but can create problems for banks, retailers and the cash-processing system.
The Bank of Ghana said such notes were unfit for circulation and could damage automated teller machines and currency-processing equipment.
They may also be rejected when presented for payment or exchange, leaving the holder exposed to a financial loss.
The central bank directed members of the public to submit mutilated or damaged banknotes to commercial banks for examination and possible replacement under its established procedures.
Where a mutilated note is presented for assessment, the holder must submit more than half of the original banknote.
This requirement helps establish that the claimant possesses a substantial part of a genuine note and reduces the risk of multiple claims being made from fragments of the same currency.
“All mutilated banknotes should be presented to a commercial bank for examination and replacement in accordance with the Bank’s laid-down procedures,” the statement said.
The warning means people who receive damaged currency should not attempt to improve its appearance before presenting it to a bank. Private repair could make the note harder to authenticate and interfere with its mechanical processing.
The Bank of Ghana has the sole mandate to manage the country’s currency, including determining whether damaged notes are fit for circulation or qualify for replacement.
Allowing an informal business to develop around repairing and recirculating damaged notes could undermine that authority and weaken quality controls within the cash system.
The risk goes beyond appearance. Adhesive materials may cause notes to stick together, interfere with counting sensors and leave residue inside ATMs and other machines. Staples can also damage processing equipment or injure people handling cash.
Improper repair could further obscure security features used to distinguish genuine currency from counterfeits.
The Bank encouraged the public to handle cedi notes carefully and report individuals engaged in their improper repair, rejoining or mutilation to the central bank or law-enforcement authorities.
“Respect the cedi. It is our national pride,” the Bank said.
The directive places responsibility on both individuals and commercial banks. Members of the public must avoid private repairs, while banks are expected to provide an orderly channel through which damaged notes can be examined and replaced.
