Ghana Currency Laws

Defacing the Cedi: A Deep Dive into Ghana’s Currency Act 242 and Penalties

Defacing the Cedi: A Deep Dive into Ghana’s Currency Act 242 and Penalties

The Ghanaian Cedi is not only the national currency, but also legal tender protected under Ghana currency laws. This guide explores the legal foundations under the Currency Act, 1964 (Act 242), what constitutes unlawful defacement or refusal to accept the Cedi, real‑world enforcement examples, and the penalties involved. :contentReference[oaicite:0]{index=0}

The Legal Framework

At the core is the Currency Act, 1964 (Act 242), a statute that criminalises discounting, altering, varying value, or refusing legal tender in ordinary commerce. The Act states that persons who buy or sell current coins or notes for values other than face value, or refuse to accept them as payment, are committing an offence. :contentReference[oaicite:1]{index=1}

In addition to Act 242, Bank of Ghana official public notices reiterate that the Bank has the sole authority to issue and redeem Cedi notes and coins under Article 183 of the 1992 Constitution and the Bank of Ghana’s regulatory powers, affirming that trading notes or using them outside ordinary tender is prohibited. :contentReference[oaicite:2]{index=2}

What Constitutes an Offence?

Act 242 describes a range of unlawful conduct that can diminish, impair, or interfere with the exchange, acceptance, or value of currency. Ghanaian authorities and legal analysts interpret these provisions broadly to include conduct that undermines the integrity or acceptability of the Cedi in commerce.

Stapling or Pinning

Under Ghana currency laws, one cultural practice seen in Ghana is attaching currency notes to gifts, bouquets, hampers, or decorative arrangements. Although culturally celebratory, when notes are stapled, pinned, or framed this way, they can be considered defaced or impaired, which runs counter to the legal principle that currency should remain intact for use as legal tender. Public statements from Bank of Ghana officials have identified this practice as inconsistent with the purpose of currency use. :contentReference[oaicite:3]{index=3}

Folding and Rolling

Everyday folding of currency is normal and unavoidable. However, excessive folding, rolling, or otherwise distorting notes can weaken security features, obscure design elements, and make notes more likely to be refused in formal banking or retail transactions. Such destruction of physical integrity makes them less acceptable and can bring the conduct into the realm of impairment under the same legal philosophy that informs Act 242’s prohibition on altering currency. :contentReference[oaicite:4]{index=4}

Writing on Notes

Writing, drawing, stamping, or engraving on banknotes—beyond casual pen marks—can obscure or damage vital security and authentication features. Although not specified verbatim in the Currency Act itself, this behavior is functionally similar to impairment or partial alteration and can reduce the note’s acceptability. Financial institutions may regard such notes as defective, raising the risk of refusal or regulatory concerns. :contentReference[oaicite:5]{index=5}

Refusing the Cedi

Section 4 of Act 242 makes it unlawful for a person to refuse to sell an article exposed for sale in the ordinary way of business simply because current coin or notes are offered as payment. This means a shopkeeper, trader, or vendor cannot lawfully refuse legal tender if offered appropriately, unless the currency has formally ceased to be legal tender. :contentReference[oaicite:6]{index=6}

Penalties

The penalties under Act 242 are significant and intended to deter offences that undermine the currency’s integrity and usage:

• Discounting/Altering Currency: Anyone who buys, sells, offers to buy or sell, or induces another to buy or sell legal tender outside standard acceptance conditions faces up to 10 years imprisonment, a fine of up to 2,000 penalty units, or both. :contentReference[oaicite:7]{index=7}
• Refusal to Accept Legal Tender: Those found guilty of refusing to accept legal tender at a point of ordinary business could face up to 3 years imprisonment, a fine of up to 750 penalty units, or both. :contentReference[oaicite:8]{index=8}

Public notices from the Bank of Ghana emphasise that trading currency notes and coins outside authorised exchange mechanisms—whether online or offline—is illegal and subject to prosecution. These notices have been widely reported in Ghanaian media, reinforcing the Deputy Governor’s position that misuse of currency can lead to real legal consequences. :contentReference[oaicite:9]{index=9}

FAQs

Is it illegal to fold or staple Ghana Cedi notes?
Ordinary folding is normal, but intentional acts that damage, staple, or pin notes to objects in ways that impair their acceptance can be considered defacement and contrary to currency use principles. :contentReference[oaicite:10]{index=10}

Can merchants refuse small coins or Pesewas?
No—under Act 242, merchants should accept all legal tender in ordinary business; refusing coins without valid legal tender cessation is contrary to the statute. :contentReference[oaicite:11]{index=11}

What happens if someone sells Cedi notes online?
Bank of Ghana statements have made clear that selling or buying Cedi notes or coins outside authorised channels, including online trading, is illegal, with penalties including possible imprisonment and/or fines. :contentReference[oaicite:12]{index=12}

Is refusing payment in US Dollars illegal?
Yes—because US Dollars are not legal tender in Ghana, a business may refuse them without violating Act 242. The Cedi remains the sole legal domestic tender. :contentReference[oaicite:13]{index=13}

Are there exceptions to refusal of legal tender?
Yes—currency that has formally ceased to be legal tender (e.g., old demonetised notes) can be refused without penalty. :contentReference[oaicite:14]{index=14}

Conclusion

Understanding Ghana’s Currency Act, 1964 (Act 242) is essential for all citizens, traders, and cultural organisers. From handling everyday banknotes with respect to avoiding defacement, to recognising obligations to accept legal tender, the law is designed to uphold confidence in the national or Ghana currency laws. With real penalties for violations, responsible handling and acceptance of the Cedi protects not only individual rights but also the integrity of Ghana’s monetary system.