Ghanaian New Cedi

Overview

The Ghanaian Cedi is the official currency for Ghana, a country located in West Africa. It is bordered by Côte d'Ivoire (Ivory Coast) to the west, Burkina Faso to the north, Togo to the east, and the Gulf of Guinea to the south.

Economy

• Ghana's economy was ranked as one of the fastest growing economies in the world in 2011, with economic growth predicted at about 20% in 2011.
• Ghana is a middle-income country. With copious natural resources, Ghana has more than twice the per capita output of poorer countries in West Africa.
• Known for its gold in the colonial era, Ghana remains one of the largest gold producers. Other export products include cocoa, oil, wood, electricity, diamonds, bauxite and manganese. Raw materials such as these are the main source of foreign exchange.
• Ghana’s political and economic stability, low crime rate, and the use of the English language across the country make it an attractive entry point to West Africa for foreigners. As a result, tourism is a rapidly growing sector, particularly among Europeans, Americans, and others connected to the Ghanaian Diaspora abroad.
• Main tourist destinations include UNESCO World Heritage Sites as Cape Coast Castle and Elmina Castle, Kakum National Parks and National Park Mole National Park, and cultural celebrations like Panafest.

History

• The Ghanaian New Cedi was introduced on July 3, 2007 and is equal to 10,000 old (Second) Cedis. It was the highest-valued currency unit issued by sovereign countries in Africa in 2007.
• One Ghanaian New Cedi is divided into one hundred Ghana pesewas.
• A number of Ghanaian New Cedi coins have also been issued in Sika denominations. The word sika means "gold”. These are probably best considered as medallic coinage, and may have no legal tender status.
• The first Cedi was introduced in 1965, replacing the British Pound at a rate of 2.4 Cedi = 1 Pound, or 1 pesewa = 1 penny.
• The second Cedi was initially pegged to the British Pound at a rate of 2 Cedi = 1 Pound. However, within months, the second Cedi was devalued to a rate of 2.45 second Cedi = 1 Pound, less than the value of the first Cedi.
• On July 1, 2007, the third Cedi, the currently used Ghanaian New Cedi, was introduced. One New Cedi was worth 10,000 second Cedis. The currencies remained pegged to each other at this exchange value. The New Cedi has become one of Africa’s higher valued currencies (rather than one of the least valued, the case with the second Cedi).