Monthly Effect on the Volume of Currency in Circulation in Ghana

Abstract

In this study, the month-of–the-year effect on the volume of Currency in Circulation in Ghana was studied. The “New Year effect” was seen in the volume of Currency in Circulation as the first three months of the year clearly indicate a decrease in the volume of Currency in Circulation. The months of January, February and March decreases the volume of the Currency in Circulation by 7.4309, 5.0307 and 0.2112 percent respectively. The “December effect” was also seen in the volume of Currency in Circulation as the month of December had the highest incremental effect (18.6046%). The findings of the study also revealed that the seasonal changes in Currency in Circulation are a reflection of the effect of celebrative periods on Currency in Circulation.

Keywords: Month-of-the-year, Currency in Circulation, Ghana, Liquidity management