Ghanaian cedi

Ghanaian cedi
Cedi banknotes
ISO 4217 code	GHS
Central bank	Bank of Ghana
Website	www.bog.gov.gh
User(s)	Ghana
Inflation	17%
Source	Ghana Statistical Service
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. It is the fourth and only legal tender in the Republic of Ghana. One Ghana cedi is divided into one hundred pesewas (Gp).

After it gained independence Ghana separated itself from the British West African pound, which was the currency of the British colonies in the region. The new republic's first independent currency was the Ghanaian pound (1958-1965). In 1965, Ghana decided to leave the British colonial monetary system and adopt the widely accepted decimal system. The African name Cedi (1965-1967) was introduced in place of the old British pound system. Its first president Kwame Nkrumah introduced Cedi notes and Pesewa coins in July 1965 to replace the Ghana pounds, shillings and pence. The cedi was equivalent to eight shillings and four pence (8s 4d) and bore the portrait of the President

After a military coup the new leaders wanted to remove the face of Nkrumah from the banknotes. The new cedi (1967-2007) was worth 1.2 cedi which made it equal to half of a pound sterling at its introduction. After decades of high inflation had devalued the new cedi, it was gradually phased out in 2007 in favor of the Ghana cedi at an exchange rate of 1:10,000. In 2007 the largest of the new cedi banknotes, the 20,000 note, had a value of about US$2. By removing four digits the Ghana cedi became the highest-denominated currency unit issued in Africa. It has since lost about 75% of its value.

Etymology

Cedi with a cowry.

The word cedi is the Fante word for cowry shell which were formerly used as currency in what is now Ghana. The Monetaria moneta or money cowry is not native to West African waters but is a common species in the Indian Ocean. The porcelain-like shells came to West Africa, beginning in the 14th century, through trade with Arab merchants. The shells became an important currency in the slave trade. The first modern coins exclusively used at the Gold Coast was produced in 1796 but cowries was used alongside coins and gold dust as currency until 1901.^[1]

History

First cedi, 1965–1967

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

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.

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.^[2]

Third cedi (GHS), 2007–

Because of the rampant inflation in the decades before the exchange the second cedi was only worth a small fraction of its original value. The government decided to "cut" four zeros off the currency by the switch to the third cedi. The new currency was not introduced as the third cedi but is instead officially called the Ghanaian Cedi, in contrast to the second cedi that was officially known as the New Cedi. In the second half of 2007 both the second and third cedi were legal tender as the old currency were being gradually withdrawn. At the end of December 2007 more than 90% of all old coins and notes had been withdrawn.^[3] From January 2008 old banknotes could only be exchanged at banks and was no longer legal tender.^[4]

On 14 May 2010 a GH₵2 banknote was issued to meet public need for an intermediate 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]

The third Cedi has been losing value continuously since it was introduced but in 2014 the inflation rose rapidly as the value of the third cedi fell to a fourth of its original value.^[6] The fall was ended in the last quarter of 2014 as the currency stabilized due to a pending IMF bailout of Ghana.^[7]

Coins

The Bank of Ghana have been issuing all Ghanaian coins since 1958.^[8] Beside the coins in general circulation the bank have also issued commemorative coins^[9] These special coins have been issued in shillings (1958), crowns (1965), pounds (1958-1977), sikas (1997-2003) and cedis (2013-).^[10] It is unclear if the Bank of Ghana considered commemorative crowns and sikas together with the commemorative pounds that were coined after 1965 as legal tender or simply as medallions.^[11]

Only coins that have been or are in general circulation are included in this list. The years of issue does not indicated that the series have been coined every year in the period but that the coin has been issued more than once in the stated period. Some coins are held back and released years after they are issued. This means that in the general circulation there are worn out coins and coins in mint condition from the same issuing year. The Bank of Ghana has never stated if they are simply holding back already stamped coins until they are needed or if they are stamping coins successively with old issue years.

Cedi (1965-67)

Cedi (Legal tender: 1965-67)
Image	Value	Description						Date of issue
Obverse & Reverse		Obverse	Reverse	Metal	Weight	Diameter	Edge
	5 pesewas	Kwame Nkrumah (Lettering:) CIVITATIS GHANIENSIS CONDITOR (the Founder of Ghana) KWAME NKRUMAH	Five-pointed star (Lettering:) The value of the coin & 1965	Copper/Nickel	4.1 g	22 mm	Smooth	19 July 1965
	10 pesewas				3.2 g	20 mm	Milled
	25 pesewas				8.65 g	27.4 mm
	50 pesewas				13.9 g	32 mm	Reeded

New cedi

New Cedi - 1st series (Legal tender: 1967-2007)
Image	Value	Description						Years of issue
Obverse & Reverse		Obverse	Reverse	Metal	Weight	Diameter	Edge
	½ pesewa	Adowa drums (Lettering:) GHANA FREEDOM AND JUSTICE	Five-pointed star (Lettering:) The value of the coin & The year of issue	Bronze	2.9 g	20.2 mm	Smooth	1967
	1 pesewa				5.72 g	25.47 mm		1967-1979
	2½ pesewas	Cacao fruits (Lettering:) GHANA FREEDOM AND JUSTICE	The shield from the Coat of arms of Ghana (Lettering:) The value of the coin & The year of issue	Copper/Nickel	3.2 g	19.5 mm		1967
	5 pesewas				2.85 g	19 mm	Reeded	1967-1975
	10 pesewas				5.6 g	23.5 mm		1967-1979
	20 pesewas				11.2 g	28 mm
	50 pesewas				12.5 g	32 mm	Milled	1979
	1 cedi	Cowry shell (Lettering:) GHANA FREEDOM AND JUSTICE		Brass	11.9 g	30 mm	Smooth

Ghana 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). By 2011 the 1 pesewa had fallen out of circulation due to inflation and is mostly kept in bank vaults.^[12]

Banknotes

The Bank of Ghana have been issuing all Ghanaian banknotes since 1958.^[13][14] Most of the Ghanaian banknotes have been changed slightly from one years issue to the next years issue in the ongoing technological fight against counterfeit money. The signature of the notes does also change when a new governor takes over the management of the Bank of Ghana.^[15] Such changes are plentiful and are not covered in this list. The years of issue does not indicated that the series have been printed every year in the period but that the banknote has been issued more than once in the stated period.

Cedi (1965-67)

Cedi (Legal tender: 1965-67)
Image	Value	Description		Date of issue
Obverse & Reverse		Obverse	Reverse
	1 cedi	Kwame Nkrumah	Bank of Ghana	19 July 1965
	5 cedis		Supreme Court
	10 cedis		Independence Arch
	50 cedis		Seashore, Palms
	100 cedis		Kumasi Central Hospital
	1,000 cedis (Only used in Interbanking Transactions)	Black Star	Bank of Ghana

New cedi (1967-2007)

1967 to 1979

New cedi - 1st series (Legal tender: 1967-79)
Image	Value	Description		Years of issue
Obverse & Reverse		Obverse	Reverse
	1 cedi	Cocoa	Shield and sword	1967-1971
	5 cedis	Fauna carvings	Fauna carvings	1967-1969
	10 cedis	Art projects	Statuettes	1967-1970

New cedi - 2nd series (Legal tender: 1972-79)
Image	Value	Description		Years of issue
Obverse & Reverse		Obverse	Reverse
	1 cedi	School girl with headphones	Cocoa farmer	1973-1978
	2 cedis	Farmer	Fishermen	1972-78
	5 cedis	Market woman	Larabanga mosque	1973-1978
	10 cedis	Pipe smoker	Akosombo Dam

1979 to 2007

New cedi - 3rd series (Legal tender: 1979-2007)
Image	Value	Description		Years of issue
Obverse & Reverse		Obverse	Reverse
	1 cedi	Young man	Basket weaver	1979-1982
	2 cedis	School girl	Field workers
	5 cedis	Northerner	Lumberers
	10 cedis	Young woman	Fishermen
	20 cedis	Miner	Kente weaver
	50 cedis (Demonetized in 1982)	Elderly man	Cocoa farmers	1979-1980

New cedi - 4th series (Legal tender: 1983-2007)
Image	Value	Description		Years of issue
Obverse & Reverse		Obverse	Reverse	Start	End
	10 cedis	W. O. II Larbi, Fred Otoo, E. Kwasi Nukpor	Rural bank building	1984	1984
	20 cedis	Queen Mother Yaa Asantewaa	Miner, army officer, student, demonstrators		1986
	50 cedis	Young man	Workers drying grain	1983
	100 cedis	Woman	Loading produce		1991
	200 cedis	Old man	Teacher and students		1993
	500 cedis	Black star, fist, and "Gye Nyame"	Cocoa and miner	1986	1994
	1,000 cedis	Diamonds	Cocoa harvest	1991	2003
	2,000 cedis	Adomi Bridge	Fishermen	1994	2006
	5,000 cedis	Coat of arms of Ghana	Cargo ships and logs
	10,000 cedis	The Big Six	Independence Arch	2002
	20,000 cedis	Ephraim Amu	National Theatre of Ghana

Ghana cedi (2007-Present)

Ghanaian cedi
Image	Value	Dimensions	Main Colour	Description		First issued
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	University of Ghana, The Balme Library	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

Exchange rate history

The price of one US$ in GH₵

See also

• Economy of Ghana
• Previous Ghana currencies:
  • Money cowry
  • Akan goldweights (golddust)
  • Gold Coast ackey
  • British West African pound
  • Ghanaian pound

References

External links

• News related to New Ghanaian currency introduced at Wikinews

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