What impact does the redenomination of the Cedi have on the economic growth of Ghana?
That is the ultimate of all that we have been doing. Our GDP and growth rate are currently very encouraging. Inflation rate, Prime rate, Poverty Head Count and interest rate have reduced considerably. Furthermore, exchange rates have been relatively stable with Internal Reserves also going up. You will agree with me that, this is the best stage to actually remove some of the zeros from our currency. Probably, some people are comparing this exercise to what took place in March 1979 where the people of Ghana were given only two weeks to change their currency (the notes). At that time, for every 100 cedis you sent to the bank you were given 70 cedis, which means that, your money was demonetized by 30%. In February 1982 the highest denomination was 50 cedis and here, people were asked to deposit their money at the bank. Some were given part of their money while others had theirs converted into 5-10 year bonds. But what we are doing now is direct; where 10,000 Cedis = 1GH (Ghana Cedi); 9,00
