Ghana’s national currency has undergone several important transformations since the country’s independence in 1957. Each change reflects shifts in economic policy, monetary reform, and national identity.
From Colonial Currency to National Control
Before independence, the region now known as Ghana used the West African currency system, administered by the West African Currency Board (WACB). It issued the West African pound, shillings, and pence across British colonial West Africa.
After gaining independence, the Bank of Ghana was established, and in July 1958, it began issuing Ghana’s own currency in the form of Ghana pounds, shillings, and pence. This marked the beginning of full national control over the country’s monetary system.
Introduction of the First Cedi
In 1965, Ghana abandoned the British colonial monetary system and adopted a decimal currency structure. On July 19, 1965, the first Ghanaian Cedi and Pesewa coins were introduced. One Cedi was equivalent to eight shillings and four pence in the old system.
The name “Cedi” originates from the Akan word for cowry shell, which was once used as a medium of exchange in the region. The “Pesewa” also draws from traditional Ghanaian monetary terms.
Currency Reforms and the “New Cedi”
Over the following decades, high inflation and currency devaluation led to further reforms. In 2007, the Bank of Ghana carried out a major redenomination exercise. The old Cedi was replaced by the new Ghana Cedi (GH¢) at a rate of GH¢1 to ¢10,000.
This redenomination aimed to simplify transactions, reduce the burden of large currency figures, and restore public confidence in Ghana’s monetary system.
Modern Usage and Significance
Today, the Ghanaian Cedi (GH¢) remains the official currency of Ghana, divided into 100 Pesewas. The Bank of Ghana continues to issue, regulate, and manage the currency through monetary policy.
Although the Cedi has faced challenges, including inflation and depreciation, its history represents Ghana’s broader journey toward economic independence, financial reform, and resilience. From cowry shells to modern polymer banknotes, the evolution of the Cedi tells the story of a nation’s progress and adaptation in a changing world.
References
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Bank of Ghana (2024). Evolution of Currency in Ghana. Accra: Bank of Ghana.
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Bank of Ghana (2023). Banknotes and Coins of Ghana. Accra: Bank of Ghana.
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Graphic Online (2023). Evolution of the Local Currency, Sixty-Six Years After Independence.
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Modern Ghana (2024). The Evolution of Ghana’s Currency.
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Pulse Ghana (2024). Cedi at 60: Tracing Ghana’s Currency Journey from Cowries to the Modern Ghana Cedi.