Ghanaian New Cedi

Overview

The Ghanaian Cedi is the official currency for Ghana, a country located in West Africa. It is bordered by Côte d’Ivoire (Ivory Coast) to the west, Burkina Faso to the north, Togo to the east, and the Gulf of Guinea to the south.

Economy

  • Ghana’s economy was ranked as one of the fastest growing economies in the world in 2011, with economic growth predicted at about 20% in 2011.
  • Ghana is a middle-income country. With copious natural resources, Ghana has more than twice the per capita output of poorer countries in West Africa.
  • Known for its gold in the colonial era, Ghana remains one of the largest gold producers. Other export products include cocoa, oil, wood, electricity, diamonds, bauxite and manganese. Raw materials such as these are the main source of foreign exchange.
  • Ghana’s political and economic stability, low crime rate, and the use of the English language across the country make it an attractive entry point to West Africa for foreigners. As a result, tourism is a rapidly growing sector, particularly among Europeans, Americans, and others connected to the Ghanaian Diaspora abroad.
  • Main tourist destinations include UNESCO World Heritage Sites as Cape Coast Castle and Elmina Castle, Kakum National Parks and National Park Mole National Park, and cultural celebrations like Panafest.

History

  • The Ghanaian New Cedi was introduced on July 3, 2007 and is equal to 10,000 old (Second) Cedis. It was the highest-valued currency unit issued by sovereign countries in Africa in 2007.
  • One Ghanaian New Cedi is divided into one hundred Ghana pesewas.
  • A number of Ghanaian New Cedi coins have also been issued in Sika denominations. The word sika means “gold”. These are probably best considered as medallic coinage, and may have no legal tender status.
  • The first Cedi was introduced in 1965, replacing the British Pound at a rate of 2.4 Cedi = 1 Pound, or 1 pesewa = 1 penny.
  • 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.
  • On July 1, 2007, the third Cedi, the currently used Ghanaian New Cedi, was introduced. One New Cedi was worth 10,000 second Cedis. The currencies remained pegged to each other at this exchange value. The New Cedi has become one of Africa’s higher valued currencies (rather than one of the least valued, the case with the second Cedi).

Symbols and Names

  • Symbols: GH₵, GH¢
  • Nicknames: none

ISO 4217 Code

GHS

Central Bank

Bank of Ghana

Currency Subunits

  • Pesewa = 1/100 of a Cedi

Denominations

  • Bills: GH₵1, 5, 10, 20, 50
  • Coins: 1, 5, 10, 20, 50Gp. GH₵1

Countries Using This Currency

  • Ghana

Currencies Pegged To GHS :

None

GHS Is Pegged To:

None

New Ghanaian currency introduced

Tuesday, July 3, 2007

New currency notes are being introduced in Ghana today. The new currency, to be called the Ghanaian cedi, replaces the previous cedi which has been in circulation since 17 February, 1967.

The Ghanaian cedi will be exchanged at 10,000 old cedis to one new Ghanaian cedi. The exchange rate against the U.S. dollar starts at GH¢0.92 to one U.S. dollar. The new ISO code for the currency is GHS, and the new symbol, GH¢.

The change, which was originally scheduled by the Bank of Ghana to start on July 1, 2007, will instead start on Tuesday July 3, as the original date is Ghana’s Republic Day.

Monday, July 2, was declared a public holiday as the actual Republic Day fell on a Sunday. July 3, is thus the first day that the currency will be available to the public as banks open to the general public. This is because ATMs were shut down over the weekend so that the currencies could be checked and replaced in all of them nationwide. The old and new currencies will be used concurrently until the end of December 2007, when the old currency will cease to be legal tender.

This is the third Ghanaian cedi to be introduced in the country since 1965.

Sources

About the Author

Sande Kennedy is the founder and Editor in Chief of SandeKennedy.com & Kenyans247.com He is a Kenyan-based Internetprenuer,blogger Political Activist & informer who has an interest in politics, governance, corporate-fraud and human-interest. Kindly drop me a note if you feel aggrieved on any matter that you would want to be highlighted  WhatsApp: +254791890826 Read More about me here