Ghana: New Currency in July 2007; after Suffering a Catastrophic Decline on Foreign Exchanges since Its Devaluation in 1983 at the Behest of the IMF, Ghana's Suffering Currency, the Cedi, Is to Be Retired in July 2007 and Replaced by a Rebranded and Stronger GH Cedi. Osei Boateng Reports

By Boateng, Osei | New African, January 2007 | Go to article overview

Ghana: New Currency in July 2007; after Suffering a Catastrophic Decline on Foreign Exchanges since Its Devaluation in 1983 at the Behest of the IMF, Ghana's Suffering Currency, the Cedi, Is to Be Retired in July 2007 and Replaced by a Rebranded and Stronger GH Cedi. Osei Boateng Reports


Boateng, Osei, New African


When Zimbabwe demonitised in mid-2006 and introduced a new currency that cut a whole lot of zeros from the then collapsing Zimbabwe dollar, there was such hue and cry and mocking abroad, especially in the Western media. No such mocking or accusations of economic mismanagement by the government will accompany Ghana's introduction of a new currency in July 2007, which will perform essentially the same function for the current cedi as Zimbabwe's new dollar did for the old dollar.

[ILLUSTRATION OMITTED]

Ghana will not call its exercise 'demonitisation', rather it is a 're-denomination'; but whatever name or term it comes with, the new currency, to be called 'Ghana cedi' (or GH cedi), will replace the current cedi which has been struggling against the world's major currencies since the Rawlings PNDC government bowed to IMF pressure and devalued it in April 1983.

[ILLUSTRATION OMITTED]

The exchange rate in those halcyon days before the devaluation was C5 to [pounds sterling]1 and C2.75 to US$1. By mid-December 2006, 23 years after the fateful devaluation, the cedi was exchanging for C18,036 to [pounds sterling]1 and almost C10,000 to US$1.

You needed a supercomputer to calculate the percentage loss over 23 years and its impact on the economy, living conditions and general wellbeing. But don't tell the economic writers of the Western media or the economists at the IMF and World Bank. Ghana is doing fine!

But some people know better. One of them is Dr Paul Acquah, governor of the Bank of Ghana, who, on 26 November, announced the 're-denomination' exercise to come in July.

Explaining why Ghana needs a new currency, Dr Acquah said the deadweight burden of the current cedi (which is now calculated in millions) made doing business in Ghana an extremely difficult job for everybody, businesses and customers alike.

There are "high transaction costs at the cashiers, and general inconvenience and high risks involved in carrying loads of currency for transaction purposes," the governor said.

The current cedi comes in 1,000, 2,000, 5,000, 10,000 and 20,000 denominations (in notes) and 500, 200 and 100 in coins (called pesewas). These will be "re-denominated by setting 10,000 cedis to one new Ghana cedi". This means 1,000,000 cedis will be equivalent to 100 GH cedis; 500,000 cedis to 50 GH cedis; 200,000 cedis to 20 GH cedis; 100,000 cedis to 10 GH cedis; 5,000 cedis to 50 GH pesewas; 2,000 cedis to 20 GH pesewas; and 1,000 cedis to 10 GH pesewas. …

The rest of this article is only available to active members of Questia

Already a member? Log in now.

Notes for this article

Add a new note
If you are trying to select text to create highlights or citations, remember that you must now click or tap on the first word, and then click or tap on the last word.
One moment ...
Default project is now your active project.
Project items
Notes
Cite this article

Cited article

Style
Citations are available only to our active members.
Buy instant access to cite pages or passages in MLA 8, MLA 7, APA and Chicago citation styles.

(Einhorn, 1992, p. 25)

(Einhorn 25)

(Einhorn 25)

1. Lois J. Einhorn, Abraham Lincoln, the Orator: Penetrating the Lincoln Legend (Westport, CT: Greenwood Press, 1992), 25, http://www.questia.com/read/27419298.

Note: primary sources have slightly different requirements for citation. Please see these guidelines for more information.

Cited article

Ghana: New Currency in July 2007; after Suffering a Catastrophic Decline on Foreign Exchanges since Its Devaluation in 1983 at the Behest of the IMF, Ghana's Suffering Currency, the Cedi, Is to Be Retired in July 2007 and Replaced by a Rebranded and Stronger GH Cedi. Osei Boateng Reports
Settings

Settings

Typeface
Text size Smaller Larger Reset View mode
Search within

Search within this article

Look up

Look up a word

  • Dictionary
  • Thesaurus
Please submit a word or phrase above.
Print this page

Print this page

Why can't I print more than one page at a time?

Help
Full screen
Items saved from this article
  • Highlights & Notes
  • Citations
Some of your highlights are legacy items.

Highlights saved before July 30, 2012 will not be displayed on their respective source pages.

You can easily re-create the highlights by opening the book page or article, selecting the text, and clicking “Highlight.”

matching results for page

    Questia reader help

    How to highlight and cite specific passages

    1. Click or tap the first word you want to select.
    2. Click or tap the last word you want to select, and you’ll see everything in between get selected.
    3. You’ll then get a menu of options like creating a highlight or a citation from that passage of text.

    OK, got it!

    Cited passage

    Style
    Citations are available only to our active members.
    Buy instant access to cite pages or passages in MLA 8, MLA 7, APA and Chicago citation styles.

    "Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences." (Einhorn, 1992, p. 25).

    "Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences." (Einhorn 25)

    "Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences." (Einhorn 25)

    "Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences."1

    1. Lois J. Einhorn, Abraham Lincoln, the Orator: Penetrating the Lincoln Legend (Westport, CT: Greenwood Press, 1992), 25, http://www.questia.com/read/27419298.

    Cited passage

    Thanks for trying Questia!

    Please continue trying out our research tools, but please note, full functionality is available only to our active members.

    Your work will be lost once you leave this Web page.

    Buy instant access to save your work.

    Already a member? Log in now.

    Search by... Author
    Show... All Results Primary Sources Peer-reviewed

    Oops!

    An unknown error has occurred. Please click the button below to reload the page. If the problem persists, please try again in a little while.