The Bank has also introduced new two-cedi coins to reduce the cost of printing.
The GH¢100 will complement the existing high denomination banknotes to ease high value transaction, while the GH¢200 will be introduced gradually into circulation and will be in limited quantities.
Addressing stakeholders, Dr Addison said the higher denominations were to ensure customer convenience, reduce high transaction cost and the cost of printing as well as currency management, including processing, transporting and storing banknotes.
He said that as a normal practice in all jurisdictions, Central Banks periodically undertake a review of the structure of their currencies with the view to making sure that they were aligned with macroeconomic conditions and demand.
“In fact, international best practices require monetary authorities to review their currency regimes at intervals of between five and ten years with the aim of ensuring that demand for banknotes are well aligned with economic activity, address weaknesses and challenges associated with the management of notes and coins in circulation,” Dr Addison said.
It also helps to assess the non-usage of a particular series to ensure efficiency in printing, and address technological innovations that affect the usage of currencies.
“A lot of thinking went into the decision to introduce the higher denomination banknotes. The structure of the banknote should align well with the needs of the people who use it for their daily transactions,” he said.
Dr Addison said the banknotes were introduced after a thorough review exercise, involving a nationwide survey with market operatives, businesses and international stakeholders.
The outcome of these exercises revealed the resurgence of deadweight burden issues on the economy due to past significant inflation and perennial depreciation of the currency, significant increase in the demand for higher denomination banknote and increased cost of printing.
Dr Addison said the introduction of the high value notes should not be misinterpreted to mean a shift away from the Central Banks policy of pursuing a cashless society and promoting the use of electronic modes of payments.
While pursuing financial inclusion by accelerating the migration to e-payment platforms, we are also mindful of the relevance of cash in our day-to-day dealings. Undeniably, cash still remains the preferred medium of payment by the large informal sector in the country.
He said the Bank of Ghana would embark on a nationwide campaign to educate the public on the features of the new denominations to facilitate detection of fake currency notes.
The need to properly handle our banknotes is still of significant importance and we must strive to keep them clean at all times in line with the Bank’s Clean Note Policy, he said.