Ghana cedi

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Not to be confused with ¢ or .
Ghana cedi
Ghana Cedi banknotes.jpg
Cedi banknotes
ISO 4217 code GHS
Central bank Bank of Ghana
 Website www.bog.gov.gh
User(s)  Ghana
Inflation 10.4%
 Source The Bank of Ghana, rate as of March 2013
Subunit
 1/100 Ghana pesewa
Symbol GH₵ (Also often GH¢)[1]
 Ghana pesewa Gp[1]
Coins 1, 5, 10, 20, 50Gp, GH₵1[1]
Banknotes GH₵1, 2, 5, 10, 20, 50[1][2]

The Ghana cedi[2] (currency sign: GH₵;[1] currency code: GHS) is the unit of currency of Ghana. The new Ghana cedi was introduced on 1 July 2007 at a rate equal to 10,000 old cedis. It was the highest-valued currency unit issued by sovereign countries in Africa in 2007.

One Ghana cedi is divided into one hundred Ghana pesewas (Gp). A number of Ghanaian coins have also been issued in "sika" denominations. These are probably best considered as "medallic" coinage, and may have no legal tender status. The word sika means "money".

Etymology[edit]

The word cedi is derived from the Akan word for cowry shell which were once used in Ghana as a form of currency.

History[edit]

Main article: Gold Coast ackey

First cedi, 1965–1967[edit]

First cedi
Preceded by:
Ghanaian pound
Reason: decimalisation
Ratio: 2.4 first cedi = 1pound, or 1 pesewa = 1 penny
Currency of Ghana
19 July 1965 – 22 February 1967
Succeeded by:
Second cedi
Reason: convenience of exchange and an opportunity to remove Kwame Nkrumah from coins and notes
Ratio: 1 second cedi = 1.2 first cedis

The first cedi was introduced in 1965, replacing the pound at a rate of 2.4 cedi = 1 pound, or 1 pesewa = 1 penny. The first cedi was pegged to the British pound at a rate of 2.4 cedis = 1 pound.

Second cedi (GHC), 1967–2007[edit]

Second cedi
Preceded by:
First cedi
Reason: convenience of exchange and an opportunity to remove Kwame Nkrumah from coins and notes
Ratio: 1 second cedi = 1.2 first cedis = 0.5 pound
Currency of Ghana
23 February 1967 – 2 July 2007
Succeeded by:
Third cedi
Reason: inflation
Ratio: 1 third cedi = 10,000 second cedis

The first cedi was replaced in 1967 by a "new cedi" which was worth 1.2 first cedis. This allowed a decimal conversion with the pound, namely 2 second cedis = 1 pound. The change also provided an opportunity to remove Kwame Nkrumah's image from coins and notes.

The second cedi was initially pegged to the British pound at a rate of 2 cedi = 1 pound. However, within months, the second cedi was devalued to a rate of 2.45 second cedi = 1 pound, less than the value of the first cedi. This rate was equivalent to 1 cedi = 0.98 U.S. dollars and the rate to the dollar was maintained when the British pound was devalued in November 1967. Further pegs were set of $0.55 in 1971, $0.78 in 1972, and $0.8696 in 1973 before the currency was floated in 1978. High inflation ensued, and so the cedi was re-pegged at ₵2.80 = $1.00.

Inflation continued to eat away at the cedi's value on the black market. In the early eighties, the government started cracking down hard on the retail of products at prices other than the official established sale price (price controls). This had the effect of driving nearly all commerce underground, where black market prices for commodities were the norm, and nothing existed on store shelves. By 1983 the cedi was worth about 120 to one U.S. dollar on the black market, a pack of cigarettes cost about ₵150 (if they could be found), but the bank rate continued at ₵2.80 = $1.00. Finally, with foreign currency completely drying up for all import transactions, the government was forced to begin a process of gradual devaluation, and a liberalization of its strict price controls. This process ended in 1990 with a free float of the cedi against foreign currencies. Inflation continued (see exchange rate chart) until by July 2007, the cedi was worth about 9500 to one US dollar, and a transition to the third cedi was initiated.

In 1979 a currency confiscation took place. New banknotes were issued which were exchanged for old at a rate of 10 old for 7 new. Coins and bank accounts were unaffected.

A second confiscation took place in 1982, when the ₵50 note (the highest denomination) was demonetized. Ghanaians, in theory, could exchange any number of ₵50 notes for coins or other banknotes without loss, but foreigners could not make any exchange. However, many Ghanaians who were hoarding large amounts of cedis feared reprisal if they tried to convert all of it, and so simply burned a lot of their money. Many other Ghanaians received "promise payment notes" from the banks, but never received compensation. This confiscation was publicly justified as a means to create a disincentive for the flourishing black market. However, from a monetary perspective, currency confiscations have the effect of reducing the available cash in the economy, and thereby slowing the rate of inflation. After the ₵50 note confiscation, the ₵20 note was the highest cedi denomination, but had a street value of only about $0.35 (U.S.)

After the ₵50 note confiscation, fears existed that the government could also confiscate the ₵20 or even the ₵10 notes. This fear, along with inflation running at about 100% annually, started causing Ghanaian society to lose its faith in its own currency. Some transactions could only then be done in foreign currencies (although that was technically illegal), and other more routine transactions began to revert to a barter economy.

Coins[edit]

First cedi[edit]

The first cedi coins were issued in denominations of 5, 10, 25, and 50 pesewas. Smaller denominations such as the ½ and 1 pesewa became obsolete.

Second cedi[edit]

Pesewa coins
Cedi coins

In 1967 coins for the second cedi were introduced in denominations of ½, 1, 2½, 5, 10, and 20 pesewas. In 1979 coins for 50 pesewas and 1 cedi were introduced. These were replaced in 1984 by smaller types alongside a new 5 cedi coin. All these early issues have since fallen out of circulation due to inflation.

In 1991, 10, 20, 50, and 100 cedi coins were introduced, followed by 200 and 500 cedis in 1996. These six denominations were still in circulation till 2007. However, the 10 cedis (~0.1 U.S. cents) and 20 cedis (~0.2 U.S. cents) coins were not seen much due to their small value.

Third cedi[edit]

The new coins are 1 pesewa (100 old cedi), 5 pesewas (500), 10 pesewas (1,000), 20 pesewas (2,000), 50 pesewas (5,000), and 1 cedi (10,000).

Banknotes[edit]

All Ghanaian banknotes are issued by the Bank of Ghana.

First cedi[edit]

On 19 July 1965, pounds, shillings, and pence were replaced by cedi notes in values of ₵1, ₵5, ₵10, ₵50, ₵100, and ₵1,000.[3]

First cedi[4]
Value Description Date of issue
Obverse Reverse
1 cedi Kwame Nkrumah Bank of Ghana
1965
5 cedis Supreme Court
10 cedis Independence Arch
50 cedis Beach
100 cedis Kumasi Central Hospital
1,000 cedis Bank of Ghana
These images are to scale at 0.7 pixels per millimetre.

Second cedi[edit]

The first issue of banknotes, dated 1967, was in denominations of ₵1, ₵5, and ₵10. A second series, introduced in 1972 and 1973, consisted of ₵1, ₵2, ₵5, and ¢10 notes. The 1979 series, for which old notes were exchanged at a reduced rate (see above) consisted of ₵1, ₵2, ₵5, ₵10, ₵20, and ₵50 banknotes.

In 1983 a new banknote series was introduced in denominations of ₵10, ₵20, ₵50, ₵100, and ₵200 cedis. Higher denomination banknotes were later introduced: ₵500 (1986), ₵1,000 (1991), ₵2,000 (1995), ₵5,000 (1996), ₵10,000, and ₵20,000 (2002). In 2005, banknotes in circulation were ₵1,000, ₵2,000, ₵5,000, ₵10,000, and ₵20,000.

First series[edit]

Second cedi - First series[4]
Value Description Date of issue
Obverse Reverse
1 cedi Cocoa Shield and sword 1967
5 cedis Fauna carvings Fauna carvings 1967
10 cedis Art projects Statuettes 1967
These images are to scale at 0.7 pixels per millimetre.

Second series[edit]

Second cedi - 1970s series[4]
Value Description Date of issue
Obverse Reverse
1 cedi School girl with headphones Cocoa farmer
1975
2 cedis Farmer Fishermen
1977
5 cedis Market woman Larabanga mosque
10 cedis Pipe smoker Akosombo dam
1978
These images are to scale at 0.7 pixels per millimetre.

Third series[edit]

Second cedi - 1980s series[4]
Value Description Date of issue
Obverse Reverse
2 cedis School girl Field workers
1982
5 cedis Northerner Lumberers
10 cedis Young woman Fishermen
1980
20 cedis Miner Kente weaver
1982
50 cedis Elderly man Cocoa farmers
1980
50 cedis Young boy Workers drying grain
1986
These images are to scale at 0.7 pixels per millimetre.

Fourth series[edit]

Second cedi - Final series[4]
Value Description Date of issue
Obverse Reverse
100 cedis Young woman Truck loaders
1990
200 cedis Old man Teacher and students
1992
500 cedis Black star, fist, and "Gye Nyame" Cocoa tree and farmers
1994
1000 cedis Diamonds Cocoa farmers
1996
2,000 cedis Coat of arms, bridge Boat loaders
1995
5,000 cedis Coat of arms Map, harbor, and ships
1998
10,000 cedis Big six Independence arch
2002
20,000 cedis Ephraim Amu National theater
These images are to scale at 0.7 pixels per millimetre.

Third cedi[edit]

The new currency is denominated in Ghana cedi (GH₵), a unit equal to 10,000 old cedi, and Ghana pesewa (Gp), equal to one-hundredth of a Ghana cedi or 10,000 old pesewa (100 old cedi). From the beginning banknotes was issued in GH₵1, GH₵5, GH₵10, GH₵20, and GH₵50 denominations. Old currency were withdrawn beginning in July 2007, and after a six month transition it could only be exchanged at banks and was no longer legal tender. The Bank of Ghana launcheded a website on this re-denomination campaign. On 14 May 2010 a GH₵2 banknote was issued to meet public need for an intermediary denomination and reduce the frequency, and associated cost, of printing large volumes of the GH₵1 banknote. The introduction of the new denomination coincides with the conclusion of the year-long centenary celebrations of the birth of Kwame Nkrumah, Ghana’s first president, and has the commemorative text “Centenary of the Birth of Dr. Kwame Nkrumah".[5] By June 2014 the third Cedi had lost 70 procent of its original value.

Ghanaian Cedi Banknotes Holders in Hohoe, Hohoe Municipal in the Volta Region of Ghana.
Third cedi[6]
Image Value Dimensions Main Colour Description Date of issue
Obverse & Reverse Obverse Reverse
1 Ghana Cedi.png 1 cedi 137 × 65 mm Red The Big Six, Independence Arch Akosombo Dam 3 July 2007
2 Ghana Cedis.jpg 2 cedis 140 × 67 mm Beige Kwame Nkrumah Parliament House 14 May 2010
5 Ghana Cedis.png 5 cedis 141 × 68 mm Blue The Big Six, Independence Arch Balme Library: University of Ghana 3 July 2007
10 Ghana Cedis.png 10 cedis 145 × 71 mm Yellow-green Bank of Ghana
20 Ghana Cedis.png 20 cedis 149 × 74 mm Purple Supreme Court
50 Ghana Cedis.png 50 cedis 153 × 77 mm Brown Christiansborg Castle 3 July 2007 to
21 August 2012
50 Ghana Cedis.jpg 21 August 2012
These images are to scale at 0.7 pixels per millimetre.

Exchange rate history[edit]

These table shows the historical value of one U.S. dollar in Ghanaian cedis:
Date Cedi per U.S. $ Date Cedi per U.S. $
First cedi
1965 0.824 1967 0.714
Second cedi
1970s ~1.000 (0.833 to 1.111) 1980 2.80 Bank rate (~20 Blackmarket)
1983 30.00 Bank rate (~120 Blackmarket) (Oct 83) 1984 35.00 (Mar 84); 38.50 (Aug 84); 50 (Dec 84)
1985 50 – 60 1986 90
1987 150 – 175 1988 175 – 230
1989 230 – 300 1990 300 – 345
1991 345 – 390 1992 390 – 520
1993 555 – 825 1994 825 – 1050
1995 1050 – 1450 1996 1450 – 1750
1997 1750 – 2250 1998 2250 – 2350
1999 2350 – 3550 2000 3550 – 6750
2001 6750 – 7300 2002 7300 – 8450
2003 8450 – 8850 2004 8850 – 8900
2005 8900 – 9500 2006 9500 – 9600
2007 9600 – 9300
Third cedi[7]
Year January 1 May 1 September 1
2008 0.930 1.005 1.155
2009 1.265 1.460 1.465
2010 1.430 1.425 1.440
2011 1.486 1.496 1.535
2012 1.639 1.855 1.932
2013 1.905 1.974 2.150
2014 2.353 2.823
Current GHS exchange rates
From Google Finance: AUD CAD CHF EUR GBP HKD JPY USD
From Yahoo! Finance: AUD CAD CHF EUR GBP HKD JPY USD
From XE.com: AUD CAD CHF EUR GBP HKD JPY USD
From OANDA.com: AUD CAD CHF EUR GBP HKD JPY USD
From fxtop.com: AUD CAD CHF EUR GBP HKD JPY USD
Note: Rates obtained from these websites may contradict with pegged rate mentioned above

See also[edit]

References[edit]

  1. ^ a b c d e Bank of Ghana. "Re-denomination of the Cedi." Accessed 26 Feb 2011.
  2. ^ a b Bank of Ghana. "Banknotes of Ghana." Accessed 26 Feb 2011.
  3. ^ Linzmayer, Owen (2012). "Ghana". The Banknote Book. San Francisco, CA: www.BanknoteNews.com. 
  4. ^ a b c d e http://www.bog.gov.gh
  5. ^ Ghana new 2-cedi note confirmed BanknoteNews.com. Retrieved 2011-10-20.
  6. ^ http://www.ghanacedi.com
  7. ^ "United States dollar (USD) and Ghanaian cedi (GHS) Exchange Rate History". freecurrencyrates.com. 11 September 2013. 

External links[edit]