Ghana cedi

Not to be confused with ¢ or ₡.

Ghana cedi
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¢)
Ghana pesewa	Gp
Coins	1, 5, 10, 20, 50Gp, GH₵1
Banknotes	GH₵1, 2, 5, 10, 20, 50

The Ghana cedi (currency sign: GH₵; currency code: GHS) is the unit of currency of Ghana. The word cedi is derived from the Akan word for cowry shell (cowry shells were once used in Ghana as a form of currency). 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 "gold".

History

Main article: Gold Coast ackey

First cedi, 1965–1967

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

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

First cedi

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

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

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

All Ghanaian banknotes are issued by the Bank of Ghana.

First cedi

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

First cedi [1]
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

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

Second cedi - First series [2]
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

Second cedi - 1970s series [3]
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

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

Second cedi - Final series [5]
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

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). Banknotes are 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 may only be exchanged at banks and will no longer be legal tender. The Bank of Ghana has launched a website on this re-denomination campaign. A new GH¢2 Cedi banknote was issued on 14 May 2010 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".

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

Exchange rate history

This 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
2007	0.92 (July 2007)	2008	1.05 (June 2008)
2009	1.49 (June 2009)	2010	1.45 (December 2010)
2011	1.61 (December 2011)	2012	1.82 (April 2012)
2013	1.94 (April 2013)

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

• Highest-valued currency unit
• Economy of Ghana
• Previous Ghana currencies:
  • British West African pound
  • Ghanaian pound

External links

• Information on the Cedi, Bank of Ghana
• Information on the new cedi issue