Brief History of the Ghana Currency
Introduction
Before gaining independence, the management of currency fell under the jurisdiction of the West African Currency Board (WACB). The West African pound, shillings, and pence were the currencies issued by the Board and remained in circulation in Ghana until July 1958.
First Issuance of National Currency
Following Independence, the newly established monetary authority, the Bank of Ghana, introduced its own currency in the form of Ghana pounds, shillings, and pence on July 14, 1958. This marked the formal transfer of currency issuance from the WACB to the Bank of Ghana.
The Emergence of the Cedi
The second issuance of currency occurred in early 1965 when Ghana opted to depart from the British colonial monetary system and embrace the widely accepted decimal system. Consequently, Cedi notes and Pesewa coins were introduced on July 19, 1965, replacing the Ghana pounds, shillings, and pence. The cedi was valued at eight shillings and four pence (8s 4d) and featured the portrait of then-President Dr. Kwame Nkrumah. The term “cedi” was derived from “sedie,” meaning cowrie, a shell currency that gained prominence in the latter part of the 19th century. The “Pesewa” represented the smallest denomination of the gold-dust currency system and was chosen to replace the British Colonial penny.
The Introduction of the New Cedi
Following the overthrow of the CPP government, the military regime opted to replace the existing currency, featuring Nkrumah’s portrait, with a new one devoid of his image. The New Cedi (N¢) was introduced on February 17, 1967, replacing the 1965 cedi at a rate of ¢1.20 = N¢1.00. The N¢ notes remained in circulation until March 1973 when they were rebranded simply as the cedi.
Currency Demonetization On March 9, 1979,
The Government announced the introduction of new cedi notes to replace the old ones at a discount of 30% for amounts up to ¢5,000 and 50% for amounts exceeding ¢5,000. Consequently, the old cedis were demonetized, and new denominations were introduced, including ¢1, ¢2, ¢5, ¢10, ¢20, and ¢50.
Currency Denominations From 1965 to the present day
various cedi and pesewa denominations, ranging from ¢1 to ¢5,000 for notes and ½ P to ¢500 for coins, have been issued. The currency issued in 1965 included ¢1, ¢5, ¢10, ¢50, ¢100, ¢1,000, 5P, 10P, and 20P. Between 1972 and 1994, seven additional note denominations and eight coin denominations were introduced, ranging from ¢2 to ¢5,000 for notes and ¢100p to 50,000p (¢500) for coins. Since 2002, two more notes, ¢10,000 and ¢20,000, have been added to the circulating notes.
Office of Statistics and Reports Issue Department
source: Bank of Ghana