Frequently Asked Questions

How many pesewas make a cedi?

In Ghana, 100 pesewas make up one cedi. The cedi (GHS) is the basic unit of currency in Ghana, and the pesewa is a subunit of the cedi. This means that if you have 100 pesewas, it is equivalent to 1 Ghanaian cedi.

How to type cedi sign in word or excel

Symbols for currencies are included in the range of Unicode points that extends from 20A0 to 20CF. There are, however, a limited number of unassigned codes within this range and the Ghana cedi is included.
There is a simple way you can the cedi sign ￠ in your word or excel either on Windows PC or Mac computer.

1. If you are using a Windows Computer like HP, Dell, Toshiba, Lenovo, Asus, Samsung and so on.
Guide: Press on the Alt key on your keyboard and type 65504 and now release your finger on the Alt Key

2. If you are using an Apple Laptop or Desktop.
Guide: Press on the Option key with your finger and type FFE0 and now release your finger on the Option Key.

Ghana Cedi

The Ghana Cedi is the official currency of Ghana. Its history is a reflection of the country’s economic and political journey since gaining independence from British colonial rule in 1957. Here is an overview of the history of the Ghana Cedi:

1. Introduction of the Ghana Pound (1958)

After gaining independence, Ghana introduced its own currency, the Ghana Pound, in 1958 to replace the British West African Pound. The Ghana Pound was pegged to the British Pound Sterling.

2. The First Cedi (1965)

In 1965, under the leadership of President Kwame Nkrumah, Ghana introduced the Cedi (GHS) to replace the Ghana Pound. The new currency was part of a broader effort to break away from colonial influence. The name “Cedi” comes from the Akan word “sedie,” meaning cowry shell, which was once used as a form of currency in West Africa. One Cedi was equivalent to 100 pesewas.

3. The Second Cedi (1967)

In 1967, following a coup that ousted President Nkrumah, the new government issued a new Cedi (GHS) to replace the first Cedi at a rate of 1 new Cedi to 1.2 old Cedis. This revaluation was part of the government’s efforts to stabilize the economy.

4. Economic Challenges and Currency Devaluation

Throughout the 1970s and 1980s, Ghana faced severe economic challenges, including high inflation, currency depreciation, and economic instability. These issues led to multiple devaluations of the Cedi, eroding its value and causing significant hardship for the population.

5. The Third Cedi (2007)

In an effort to simplify transactions and restore confidence in the national currency, the Bank of Ghana introduced a redenomination of the Cedi in July 2007. The third Cedi, also known as the Ghanaian New Cedi (GHS), replaced the second Cedi at a rate of 1 New Cedi to 10,000 old Cedis. This redenomination aimed to address the problems of currency devaluation and improve the efficiency of the monetary system.

6. Modern Developments

Since the 2007 redenomination, the Ghanaian Cedi has experienced periods of stability and volatility. The currency’s value is influenced by various factors, including fluctuations in global commodity prices, particularly cocoa and gold, which are major exports for Ghana. The government and the Bank of Ghana have implemented various monetary and fiscal policies to maintain the currency’s stability and promote economic growth.

Banknotes and Coins

The Ghanaian Cedi is issued in both banknotes and coins. The current series of banknotes includes denominations of 1, 2, 5, 10, 20, 50, 100, and 200 Cedis. Coins are available in denominations of 1, 5, 10, 20, and 50 pesewas, as well as 1 Cedi.

Cultural and Historical Significance

The design of Ghanaian banknotes and coins reflects the country’s rich cultural heritage and history. The notes feature prominent Ghanaian figures, historical landmarks, and symbols of national pride.

The following factors influence the appreciation and depreciation of the Ghana Cedi

The value of the Ghanaian cedi (GHS) can be influenced by a range of economic, political, and social factors. Here are some key factors that affect the appreciation and depreciation of the Ghanaian cedi:

Factors Leading to Appreciation of the Ghanaian Cedi

1. Foreign Direct Investment (FDI):

   • Increased investment from foreign entities can boost demand for the cedi, leading to its appreciation. FDI brings in foreign capital, which can improve the country’s balance of payments and strengthen the currency.

2. High Export Earnings:

   • When Ghana’s export commodities (such as gold, cocoa, and oil) perform well on the international market, the country earns more foreign currency. This increased influx of foreign exchange can lead to an appreciation of the cedi.

3. Remittances:

   • Inflows from Ghanaians living abroad can increase the supply of foreign currency, boosting the cedi’s value. High remittance levels can positively impact the country’s foreign exchange reserves.

4. Monetary Policy:

   • Tightening of monetary policy by the Bank of Ghana, such as raising interest rates, can attract foreign investors seeking higher returns, thereby increasing demand for the cedi and causing it to appreciate.

5. Stable Political Environment:

   • Political stability and good governance can increase investor confidence, attracting foreign investments and boosting the cedi.

6. Strong Economic Growth:

   • A robust and growing economy can enhance investor confidence, increase capital inflows, and boost the value of the cedi.

Factors Leading to Depreciation of the Ghanaian Cedi

1. High Inflation Rates:

   • Persistent high inflation can erode the value of the cedi, leading to depreciation. Inflation reduces purchasing power and can lead to a loss of confidence in the currency.

2. Trade Deficits:

   • A trade deficit occurs when a country imports more goods and services than it exports. This creates higher demand for foreign currencies and can lead to the depreciation of the cedi.

3. External Debt:

   • High levels of external debt can lead to depreciation if the country struggles to meet its debt obligations, leading to outflows of foreign currency.

4. Political Instability:

   • Political uncertainty or instability can reduce investor confidence and lead to capital flight, causing the cedi to depreciate.

5. Speculative Activities:

   • Speculative trading in foreign exchange markets can lead to sharp fluctuations in the value of the cedi. If speculators believe the cedi will weaken, they may sell off the currency, leading to depreciation.

6. Global Economic Conditions:

   • Adverse global economic conditions, such as a recession in key trading partner countries, can reduce demand for Ghana’s exports and lead to a depreciation of the cedi.

7. Lower Foreign Exchange Reserves:

   • A decline in foreign exchange reserves can limit the ability of the Bank of Ghana to support the cedi, leading to depreciation.

8. Poor Fiscal Management:

   • Unsustainable fiscal policies, high budget deficits, and excessive government borrowing can weaken investor confidence and lead to depreciation.

Summary

The value of the Ghanaian cedi is influenced by a complex interplay of domestic and international factors. Sound economic policies, political stability, and favorable global conditions can help support the cedi, while economic mismanagement, political instability, and adverse external shocks can lead to its depreciation.