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Ghanaian cedi
ISO 4217 Code GHS
User(s)  Ghana
Inflation 10.68%
Source The Bank of Ghana, rate as of May 2010
Subunit
1/100 pesewa
Symbol GH₵
Coins 1, 5, 10, 20, 50 pesewa, 1 cedi
Banknotes 1, 2, 5, 10, 20, 50 cedi
Central bank Bank of Ghana
Website www.bog.gov.gh

The cedi (currency sign: ; currency code: GHS) is the unit of currency of Ghana. One cedi is divided into one hundred pesewas. The present cedi was introduced on July 3, 2007, and was equal to 10,000 old cedis when redenomination saw four zeros lopped off the value. It was the highest-valued currency unit issued by sovereign countries in Africa in 2007.

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

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".

Currency sign

The Ghanaian cedi symbol resembles the letter C struck through with a vertical bar. The symbol was accepted for encoding in Unicode as U+20B5 in 2004. It should not be confused with the colón sign , which has a code point U+20A1 in Unicode (or 8353 in decimal); or the cent sign ¢, which has a code point U+00A2 in Unicode (or 162 in decimal). However, because some fonts do not provide a cedi character, the cent sign is sometimes used as a replacement for the cedi.

History

For earlier Ghanaian currency, see Gold Coast ackey.

First cedi, 1965–1967

First cedi
Preceded by:
Ghanaian pound
Reason: decimalisation
Ratio: 2.4 first cedi = 1 pound, 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 US 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 US 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 (US).

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.

Third cedi (GHS), 2007–

Third cedi
Preceded by:
Second cedi
Reason: inflation
Ratio: 1 third cedi = 10,000 second cedis
Currency of Ghana
3 July 2007 –
Succeeded by:
Current

On July 1, 2007, a third cedi was introduced, worth 10,000 second cedis. [1] The external purchasing power of the old and new currencies are the same; the cedi was neither devalued nor re-valued, only redenominated. Because of this change, Ghana's currency became one of the highest-valued currency units from one of the least valued currency units.

A new ISO currency code GHS was also introduced on this date. In addition, the central bank named the third cedi the Ghana Cedi and assigned the symbol GH₵ to distinguish it from the second cedi, currently known as the cedi with the symbol . The Ghana cedi will, from January 2008, be simply known as the cedi. [2]

Coins

First cedi

First cedi coins were issued in denominations of 5, 10, 25 and 50 pesewas. Smaller denominations were not needed as the ½ and 1 penny continued to circulate as ½ and 1 pesewa. All coins bore the portrait of Kwame Nkrumah.

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 are still in circulation. However, the 10 cedis (~0.1 US cents) and 20 cedis (~0.2 US 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 (1000), 20 pesewas (2000), 50 pesewas (5000) and 1 cedi (10,000).

Banknotes

All Ghanaian banknotes are issued by the Bank of Ghana.

First cedi

In 1965, banknotes were issued in the first cedi in values of ₵1, ₵5, ₵10, ₵50 and ₵100.

First cedi [1]
Image Value Description Date of issue
Obverse Reverse
1 cedi (1965).jpg 1 cedi Kwame Nkrumah Bank of Ghana 1965
5 cedi (1965).jpg 5 cedis Supreme Court
10 cedi (1965).jpg 10 cedis Independence Arch
50 cedi (1965).jpg 50 cedis Beach
100 cedi (1965).jpg 100 cedis Kumasi Central Hospital
These images are to scale at 0.7 pixels per millimetre. For table standards, see the banknote specification table.

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), ₵1000 (1991), ₵2000 (1995), ₵5000 (1996), ₵10,000 and ₵20,000 (2002). In 2005, banknotes in circulation were ₵1000, ₵2000, ₵5000, ₵10,000 and ₵20,000.

First Series

Second cedi - First series [2]
Image Value Description Date of issue
Obverse Reverse
5 cedi (1969).jpg 5 cedis Fauna carvings Fauna carvings 1969
10 cedi (1969).jpg 10 cedis Art projects Statuettes
These images are to scale at 0.7 pixels per millimetre. For table standards, see the banknote specification table.

Second Series

Second cedi - 1970s series [3]
Image Value Description Date of issue
Obverse Reverse
1 cedi (1975).jpg 1 cedi School girl with headphones Cocoa farmer 1975
2 cedi (1977).jpg 2 cedis Farmer Fishermen 1977
5 cedi (1977).jpg 5 cedis Market woman Larabanga mosque
10 cedi (1978).jpg 10 cedis Pike smoker Akosombo dam 1978
These images are to scale at 0.7 pixels per millimetre. For table standards, see the banknote specification table.

Third Series

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

Fourth Series

Second cedi - Final series [5]
Image Value Description Date of issue
Obverse Reverse
100 cedi (1990).jpg 100 cedis Young woman Truck loaders 1990
200 cedi (1992).jpg 200 cedis Old man Teacher and students 1992
500 cedi (1994).jpg 500 cedis Black star, fist, and "Gye Nyame" Cocoa tree and farmers 1994
1000 cedi (1996).jpg 1000 cedis Diamonds Cocoa farmers 1996
5000 cedi (1998).jpg 5000 cedis Coat of arms Map, harbor, and ships 1998
10000 cedi (2002).jpg 10000 cedis Big six Independence arch 2002
20000 cedi (2002).jpg 20000 cedis Ephraim Amu National theater
These images are to scale at 0.7 pixels per millimetre. For table standards, see the banknote specification table.

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 May 14, 2010.

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

Exchange rate history

This table shows the historical value of one U.S. dollar in Ghanaian cedis:

Date Cedi per US $ Date Cedi per US $
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)
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 OzForex: 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

http://www.ghanaweb.com/GhanaHomePage/economy/forex.php

See also

References

  1. "Government website on redenomination". Bank of Ghana. Retrieved 2007-06-19.Page Module:Citation/CS1/styles.css has no content.
  2. "Central Bank website on redenomination" (PDF). Bank of Ghana. Retrieved 2007-07-11.Page Module:Citation/CS1/styles.css has no content.

External links

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