In this article, We learn about “The Ghanaian Cedi (GHC)”.Let’s Go!
The Ghanaian Cedi (GHS) is the official currency of the West African country of Ghana.
The Ghana Cedi was introduced in 1965, replacing the Ghanaian pound at an exchange rate of 2.4 cedis to the pound.
In 2007, the currency was revalued and the new Ghanaian Cedi (GHS) replaced the old Cedi (GHC) at an exchange rate of 1 new cedi to 10,000 old cedis.
The Bank of Ghana is responsible for issuing and managing the Ghana Cedi.
Exchange rate system
The Ghana Cedi operates on a floating exchange rate system, with its value relative to other currencies determined by market forces such as supply and demand.
The Central Bank of Ghana may intervene in the foreign exchange market when necessary to maintain stability or prevent excessive volatility.
This system allows the Ghanaian Cedi to respond to external shocks and changes in global market conditions while maintaining a degree of stability.
Segments and denominations
The
Ghana Cedi is subdivided into 100 smaller units called pesewas.
Coins are available in denominations of 1, 5, 10, 20 and 50 pesewas, as well as 1 and 2 cedis coins.
Banknotes are available in denominations of 1, 2, 5, 10, 20, 50, 100 and 200 cedis.
Economy and Challenges
Ghana has a diversified economy with various sectors such as agriculture, mining, manufacturing and services making significant contributions.
The country is rich in natural resources, especially gold, cocoa and oil, and is a major source of foreign exchange. Agriculture remains an important sector providing employment to a large proportion of the population.
However, Ghana faces several economic challenges such as high levels of public debt, inflation and unemployment.
The country is also vulnerable to fluctuations in global commodity prices, particularly gold and cocoa, which could have a significant impact on its economy.
The Ghanaian government has been committed to formulating policies to promote economic growth, economic diversification and solve social problems.
Summary
In summary, the Ghanaian Cedi is the official currency of Ghana and is administered by the Bank of Ghana.
The currency operates on a floating exchange rate system, with its value determined by market forces and potential central bank intervention.
The Ghana Cedi is subdivided into pesewas and issued in various banknotes and coins.
Ghana’s economy is diversified, with substantial contributions from various sectors, but the country is challenged by high levels of public debt, inflation and unemployment, and vulnerability to global commodity price volatility.
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