Ghana adopted cedi notes and pesewa coins in 1965 following independence from British rule. The transition from the British monetary system began in 1957, reflecting a move to decimal currency. Significant redenominations occurred over the years, most recently in 2007, with ongoing discussions regarding their impact on currency value and exchange rates.
Ghana currently utilizes cedi notes and coins as its official currency. Following independence from British colonial rule, the cedi along with pesewa coins replaced the Ghana pound, shilling, and pence on July 19, 1965. Prior to this transition, the West African Currency Board facilitated trading across the sub-region between the early 1940s and 1954.
In 1957, Ghana made a strategic decision to exit the British Colonial Monetary System and adopt a decimal currency system. The initial cedi notes and pesewa coins were valued at eight shillings and four pence (8s 4p) and featured Dr. Kwame Nkrumah, Ghana’s first president. The term ‘cedi’ is derived from the Akan word ‘sedie’, meaning cowrie, a popular shell currency in the late 19th century.
On the other hand, ‘pesewa’ signified the smallest unit of gold-dust currency and was selected to replace the British colonial penny. In 2022, Wonder Ami Hagan, host of People & Places on GhanaWeb TV, visited the Ghana National Museum, which features historical currency specimens from the colonial era to the present.
The museum’s tour guide indicated that since independence, Ghana’s currency has undergone several changes. The last major redenomination occurred on July 1, 2007, under President John Agyekum Kufuor’s administration with the slogan “the value will be the same”. While opinions diverge on whether the redenomination truly preserved the currency’s value, some analysts assert that it negatively impacted its exchange rate against the US Dollar.
The redenomination established that ten thousand cedis equated to one Ghana cedi. Officials from the government and the Bank of Ghana cited the complexities of accounting and statistical record-keeping as driving factors for the redenomination and also referenced challenges with data processing software.
In conclusion, Ghana’s currency evolution has been marked by significant transitions beginning post-independence in 1965. The adoption of the cedi and pesewa in 1957 marked a departure from the British monetary system, and later redenominations reflect attempts to simplify economic management. While the impact of these changes is debated, they have played a crucial role in shaping Ghana’s current financial landscape.
Original Source: www.ghanaweb.com
