Ghana has transitioned to cedi notes and pesewa coins as legal tender since July 19, 1965, following independence from Britain. The cedi, derived from the Akan term for cowrie, replaced the British colonial currency to adopt a decimal monetary system. Changes, including the 2007 redenomination, aimed to modernize financial management despite ongoing debates regarding currency value retention.
Currently, Ghana utilizes the cedi notes and coins as its legal currency. The transition occurred shortly after gaining independence from British colonial control, specifically on July 19, 1965, when the cedi notes and pesewa coins replaced the previous system comprised of Ghana pounds, shillings, and pence.
Prior to adopting the cedi, the West African Currency Board facilitated trading in the region from the early 1940s until 1954. By 1957, Ghana’s decision to abandon the British Colonial Monetary System cemented its commitment to modernization by implementing a decimal currency system.
During that transition, the new currency equated to eight shillings and four pence (8s 4p) and featured the likeness of Dr. Kwame Nkrumah, the nation’s first president. The term ‘cedi’ derives from the Akan word ‘sedie,’ which translates to cowrie, a shell currency that became prevalent in the late 19th century.
In addition, the ‘pesewa’ represented the smallest denomination, replacing the British colonial penny and traceable to the gold-dust currency era. In 2022, Wonder Ami Hagan, from GhanaWeb TV’s People & Places, visited the newly refurbished Ghana National Museum, showcasing currency specimens from the colonial period to the present.
According to a museum guide, Ghana has undergone several currency changes since independence, culminating in the most recent redenomination on July 1, 2007, under President John Agyekum Kufuor, who adopted the slogan “the value will be the same.” There continues to be debate surrounding the efficacy of this redenomination in maintaining currency value against the US Dollar.
The redenomination process established that ten thousand old cedis equated to one new Ghana cedi, addressing the rising challenges in accounting and data management. The Bank of Ghana cited these technical difficulties as a key reason behind the redenomination action.
In summary, Ghana’s evolution of currency from cowries to cedis reflects the nation’s journey towards financial independence and modernization. The establishment of the cedi notes and pesewa coins represented a significant shift from colonial monetary systems, culminating in the 2007 redenomination that aimed to simplify accounting. Despite debates over its effectiveness, this transition signifies Ghana’s ongoing efforts to enhance its economic stature.
Original Source: www.ghanaweb.com
