Ghana transitioned from colonial currency to adopting the cedi and pesewa in 1965, replacing the Ghana pound. The cedi, derived from the Akan word for cowrie, symbolizes a historical currency. Key reforms, including the 2007 redenomination, aimed to simplify currency management and maintain value, despite ongoing debates about its success.
Ghana currently recognizes cedi notes and coins as its legal tender, a transition that began after the country gained independence from British colonial rule. On July 19, 1965, the cedi and pesewa replaced the Ghana pound, shilling, and pence, marking a significant monetary reform. Prior to this, the West African Currency Board facilitated trade in the region from the early 1940s until 1954.
In 1957, Ghana officially departed from the British colonial monetary system to embrace the decimal system. The initial cedi notes and pesewa coins, which depicted the portrait of Ghana’s first president Dr. Kwame Nkrumah, converted to a value of eight shillings and four pence (8s 4p). The term ‘cedi’ originates from the Akan word ‘sedie’, meaning cowrie, representing a traditional form of currency.
Additionally, the term ‘pesewa’ replaced the British penny and signified the smallest value in the historical gold-dust currency system. In 2022, Wonder Ami Hagan of People & Places accessed the Ghana National Museum, showcasing currency specimens from Ghana’s colonial era to its present cedi notes.
Currency evolution continued until July 1, 2007, when the last redenomination occurred under President John Agyekum Kufuor with the slogan, “the value will be the same”. Critics debate the effectiveness of this move, with some asserting that it negatively affected the local currency’s value against the US dollar. The redenomination simplified conversions, changing ten thousand cedis to one Ghana cedi. The rationale behind this adjustment, according to the Bank of Ghana, was the increasing challenges in maintaining accounting accuracy and statistical records.
The history of Ghana’s currency illustrates significant changes from cowrie shells to the current cedi and pesewa system. The transition from the British colonial monetary system to the adoption of the decimal system in 1957 marked a pivotal shift. The 2007 redenomination aimed to enhance economic stability and simplify currency management. Despite debates on its effectiveness, these changes have shaped Ghana’s monetary landscape and financial identity.
Original Source: www.ghanaweb.com
