The currency of Ghana is the Ghanaian cedi, abbreviated as GHS. One cedi is divided into 100 smaller units called “Ghana pesewas.” The symbol for the cedi is “₵,” although this is less commonly used than the abbreviation.
The currency of Ghana is the Ghanaian cedi. It is the fourth historical and only current legal tender in the Republic of Ghana. One cedi is divided into one hundred pesewas (Gp). The currency symbol is GH₵, and the currency code is GHS.
History Of The Ghanaian Currency
The Ghanaian cedi was introduced in 1965, replacing the Ghanaian pound. It has been redenominated three times since then, most recently in 2007.
The Ghanaian cedi is a fiat currency, meaning that it is not backed by any physical commodity, such as gold or silver. Instead, its value is determined by the government of Ghana and the central bank, the Bank of Ghana.
The cedi has undergone several changes in its history, with the most recent version introduced in 2007 to help simplify transactions and accounting. The currency was “redenominated” at that time, effectively knocking off four zeros from the older versions. For example, 10,000 old cedis became 1 new cedi.
The Value of the Ghana Currency
The Ghanaian cedi is used for all transactions in Ghana, including cash, credit cards, and debit cards. It is also accepted in some neighboring countries, such as Togo and Burkina Faso.
However, it is important to note that the Ghanaian cedi is not a widely traded currency outside of Ghana. This can make it difficult to exchange Ghanaian cedis for other currencies, especially when traveling abroad. It is therefore recommended to exchange Ghanaian cedis for a more widely traded currency, such as the US dollar or the euro, before traveling abroad.
From a user’s perspective, especially if you’re traveling to Ghana or doing business there, it’s essential to know that the cedi’s value can be volatile. This fluctuation can impact costs and exchange rates, so it’s advisable to check current rates before any major transactions.
In terms of design, the cedi notes feature images of important Ghanaian historical figures and landmarks, serving educational and cultural functions in addition to their monetary use.
If you’re comparing the cedi to other African currencies, it’s not as strong as the South African rand or the Moroccan dirham, but generally stronger than currencies of some other West African countries like the Nigerian naira.
Key Decision-Making Factors:
Exchange rate volatility: Keep an eye on this if planning to exchange large sums.
Availability: The cedi is not as readily available outside Ghana, so it might be advisable to conduct any necessary exchanges upon arrival.
In summary, the Ghanaian cedi serves its purpose effectively within its economic context, but its value can be subject to significant fluctuations. Therefore, understanding its relative strengths and weaknesses is crucial for any financial transactions involving this currency.