Ghana’s currency has evolved from the Ghana pounds to cedi notes and pesewa coins, officially adopted in 1965. The transition in 1957 marked the departure from the British Colonial Monetary System to a decimal currency format. A significant redenomination occurred in 2007, sparking discussions about its impact on currency value.
Ghana’s currency has notably transformed over the years, with the cedi notes and coins currently serving as the country’s legal tender. This shift began shortly after Ghana’s independence from colonial rule, when the cedi and pesewa replaced the Ghana pounds, shillings, and pence on July 19, 1965. Before this change, the West African Currency Board was utilized primarily for trading in the region from the early 1940s until 1954.
In 1957, Ghana transitioned away from the British Colonial Monetary System to adopt a decimal currency format. The newly minted cedi notes and pesewa coins were initially valued at eight shillings and four pence, featuring the likeness of Ghana’s first president, Dr. Kwame Nkrumah. The term ‘cedi’ is derived from ‘sedie’, an Akan word denoting cowrie shells, which were widely used as currency in the late 19th century.
The pesewa, the smallest unit of the new currency, replaced the British colonial penny, harking back to the gold-dust currency system of the past. In 2022, Wonder Ami Hagan, host of People & Places on GhanaWeb TV, visited the refurbished Ghana National Museum, which exhibits a collection of currency specimens from Ghana’s colonial period to present.
The tour guide reported that Ghana has seen several phases of currency evolution since independence, culminating in a redenomination on July 1, 2007, under the John Agyekum Kufuor administration, which claimed, “the value will be the same.” This policy led to a conversion where ten thousand cedis equated to one Ghana cedi, although debates continue regarding whether the redenomination maintained the currency’s inherent value against the US Dollar.
The government and the Bank of Ghana defended the redenomination by highlighting the challenges faced in managing accounting and statistical records, as well as various issues linked to data processing software, which necessitated this pivotal change.
In summary, Ghana’s currency has undergone significant changes since its independence, transitioning from the Ghana pounds to the current cedi notes and pesewa coins. The adoption of a decimal standard facilitated this evolution, while the renaming of currency units linked to historical forms of money highlights the nation’s cultural heritage. Despite some contention surrounding the redenomination in 2007, the government’s efforts were aimed at improving financial record-keeping and data processing.
Original Source: www.ghanaweb.com
