When Professor Chukwuma Soludo, the governor of the Central Bank of Nigeria (CBN) announced his plans to redenominate the naira, Nosike Ogbuenyi travelled to Accra, Ghana, to feel the pulse of Ghanaians as their country transits from the old cedi, which exchanged 10,000 cedis to US$1, to the new cedi which is at par with the dollar. He saw a country that is gradually adjusting to the new reality.
Mr Musa Ayuba operates a bureau de change at Kotoka International Airport, Accra, Ghana. Before, if he wanted to sell just a dollar, he would need to collect and count 10,000 cedis from the buyer. If it was $1000, then that would be trouble. He would have had to count 10,000,000 cedis. Now, thanks to the knocking off of four zeros by the Bank of Ghana, he would count only 1,000 Ghana cedis, as the new currency is called, in exchange for $1000.
“I’m enjoying doing business now,” he told THISDAY. “Business has become faster and easier with the new currency. I now handle fewer notes. Before we would be counting millions that were no millions. Millions now mean millions. Nothing less. The value still remains the same, we know, but the burden of carrying bags of worthless notes is now lifted off our shoulders.”
Two months after the take-off of the redenomination exercise of the Ghanaian currency, the Cedi, Ghanaians like Ayuba are optimistic that the measure would usher in an era of prosperity for their beloved country.
The government's campaign that the change in currency affects only the digits while the value remains the same appears to be well taken by the majority of the citizens.
The newly re-denominated notes and coins have now overtaken the old currency in major markets and other informal commercial centres in the capital city, Accra.
The redenomination which came into force with the introduction of the new Cedi currency at the beginning of July this year is expected to come to a close on December 31 this year.
Since the take-off, the new and the old currencies have been circulating side by side in the Ghanaian economy and would continue to do so for six months until December 31.
Old notes are becoming very scarce while the new ones expectedly dominate. The unity of purpose inspired by a strong sense of patriotism and confidence in the political leadership is the twin attribute that fires the determination of the average Ghanaian as the English speaking West African country pushes through its tasking economic reforms whose high-point is the re-denomination of the Cedi.
A majority of the people interviewed by THISDAY said they were happy with the currency transformation. They are upbeat that it would culminate in a tremendous economic turn-around for them and their country.
Massive public enlightenment campaign heralded the redenomination scheme. The publicity blitz is still in progress, coming in form of jingles at short intervals everyday on Ghana’s popular radio and television stations. The level of advertisement in the print media is no less than the electronic.
The Graphic, The Times, The Spectator and other major Ghanaian newspapers and magazines are awash with messages explaining what the currency redenomination entails in the simplest way possible.
An internet cafe operator in Nima area of Accra, Mr. Kofi John, said the advertisement given the redenomination exercise is massive. In hotels, public and private offices, shops and similar places in Accra several posters, handbills, stickers, banners, fact sheets and other publications explaining the exercise abound.
THISDAY was told that the same kind of massive enlightenment is replicated in all the other provinces of Ghana. A Lebanese dealer in computer wares and consumables, Chadli Laghloul, whose company, Y3K Computers, is located at Randolph House, along Ring Road, in Accra North described the redenomination as a fortuitous development. He said that business transactions were now faster and smoother.
Residential houses in Accra are not left out of the mobilization and enlightenment campaign as citizens display the various publications explaining what the redenomination entails on their walls. It is as if anyone who refuses to join the bandwagon in promoting the scheme is an enemy or an outcast.
Major markets in Accra visited by THISDAY during the week for on-the-spot observation and opinion sampling include Makola, where ready made clothes, fashion materials, cosmetics et cetera are sold, Malata and Agbogbloshie, a popular out-post for foodstuff.
Many traders expressed satisfaction with the redenomination programme, saying that so far things have been working out fine. They gave kudos to the Bank of Ghana and the government for educating the people rigorously on the redenomination.
With effect from December 31st this year, the old Cedi currency will cease to be a legal tender in Ghana. By December, virtually all the old currencies in circulation would have been mopped up and withdrawn from circulation. The practice now is that all bank payments and withdrawals are effected in the new currency while salaries of government workers and public servants and office holders are being paid in the new Cedi currency.
However, many Ghanaians are sceptical of the new arrangement. One of them is Madam Theodora Appia who sells fruits along Abelemkpe Avenue in Accra . Her wares include onions, groundnut, pineapple and pear. Theodora found most disgustful the problem of sourcing lower denominations to enable her easily give change to her customers. She said that the hurried withdrawal of the old currency and the scarcity of the new coins have combined to make transactions more cumbersome for them (low income traders).
Mr Kofi Quashie, a tourist agent at the Kotoka International Airport, Accra, said the government has been educating people in English and the various indigenous languages on the scheme and how it will be implemented. The enlightenment started since January this year.
Quashie, who hails from Ashanti Region was elated that the Cedi has at long last overtaken the United States Dollar. At a Kotoka airport bureau de change last Thursday, a US Dollar sold for 95 pesewas, less than the new Cedi.
At many bureau de change visited by THISDAY in different parts of Accra last week, N1000 exchanged for between GHc6.70 and GHc70. The bureau operators sold N1000 for between GHc72 and GHc73. One new Ghana Cedi is made up of 100 pesewas.
The new Ghanaian currency which came into effect last month is known asGhana Cedi (GHc) and Ghana pesewa (Gp). The new notes are GHc1 (oneGhana cedi), GHc5, GHc10, GHc20 and GHc50. The new coins are 1Gp (one Ghana pesewa), 5Gp, 10Gp, 20Gp and 50Gp.
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