First cedi, 1965–1967 AS The first cedi was introduced in 1965, replacing the
pound at a rate of 2.4 cedi = 1 pound, or 1 pesewa = 1 penny. The first cedi was pegged to
sterling at a rate of 2.4 cedis = £1, or 8s 4d per cedi.
Second cedi (GHC), 1967–2007 The first cedi was replaced in 1967 by a "new cedi" which was worth 1.2 first cedis. This allowed a
decimal conversion with the pound, namely 2 second cedis = 1 pound. The change also provided an opportunity to remove
Kwame Nkrumah's image from coins and notes. The second cedi was initially pegged to sterling at a rate of ₵2 = £1. However, within months, the second cedi was devalued to a rate of ₵2.45 = £1, less than the initial value of the first cedi. This rate was equivalent to ₵1 = 0.98
U.S. dollars and the rate to the
dollar was maintained when sterling was devalued in November 1967. Further pegs were set of $0.55 in 1971, $0.78 in 1972, and $0.8696 in 1973 before the currency was floated in 1978. High
inflation ensued, and so the cedi was re-pegged at ₵2.80 = $1.00. The cedi's value continued to be eaten away on the black market. In the early 1980s, the government started cracking down on the retail of products at prices other than the official established sale price (also known as
price controls). This had the effect of driving nearly all commerce underground, where black market prices for commodities were the norm, and nothing existed on store shelves. By 1983, one
U.S. dollar equalled about 120 cedis on the black market; a pack of cigarettes cost about ₵150 (if they could be found), but the bank rate continued at ₵2.80 = $1.00. Finally, with foreign currency completely drying up for all import transactions, Ghana was forced to begin a process of gradual devaluation, as well as a liberalization of its strict price controls. This process ended in 1990 with a free float of the cedi against foreign currencies. Inflation continued (see the exchange rate chart) until by July 2007, one US dollar was worth about ₵9500, and a transition to the third cedi was initiated. In 1979 a currency confiscation took place. New banknotes were issued which were exchanged for old ones at a rate of 10 old notes for 7 new ones. Coins and bank accounts were unaffected. A second confiscation took place in 1982, when the ₵50 note (the highest denomination) was demonetized. Ghanaians, in theory, could exchange any number of ₵50 notes for
coins or other
banknotes without loss, but foreigners could not make any exchange. However, many
Ghanaians who were hoarding large amounts of cedis feared reprisal if they tried to convert all of it, and so simply
burned a lot of their money. Meanwhile,
Ghanaians in the United Kingdom received "promise payment notes" from banks, but never received compensation. This confiscation of money was publicly justified as a means to create a disincentive for the flourishing black market. However, from a monetary perspective, currency confiscations have the effect of reducing available cash reserves in the economy of Ghana, thereby slowing the rate of inflation. After the ₵50 note confiscation, the ₵20 note was the highest cedi denomination, but had a street value of only about $0.35 (U.S.) After the ₵50 note confiscation, fears existed that the government could also confiscate the ₵20 or even the ₵10 notes. This fear, along with inflation running at about 100% annually, started causing Ghanaians to lose faith in their country's own currency. Some transactions could only then be done in foreign currencies (although that was technically illegal), and other, more routine transactions began to revert to
barter. In 1991, 10, 20, 50, and 100 cedi coins were introduced, followed by 200 and 500 cedis in 1996. These six denominations were still in circulation until 2007. However, the 10 cedis (~0.1
U.S. cents) and 20 cedis (~0.2 U.S. cents) coins were not seen much due to their small value.
Third cedi (GHS), 2007–present Because of the rampant inflation in the decades before the exchange the second cedi was only worth a small fraction of its original value.
The government decided to "cut" four zeros off the currency by switching to the third cedi. The new currency was not introduced as the third cedi but is instead officially called the "Ghanaian cedi" (GH₵), in contrast to the second cedi that was officially known as the "new cedi". In the second half of 2007 both the second and third cedi were legal tender as the old currency was being gradually withdrawn. At the end of December 2007, more than 90% of all old coins and notes had been withdrawn. From January 2008 old banknotes could only be exchanged at banks and were no longer legal tender. On 14 May 2010, a GH₵2 banknote was issued to meet public need for an intermediate denomination and reduce the frequency, and associated cost, of printing large volumes of the GH₵1 banknote. The introduction of the new denomination coincided with the conclusion of the year-long centenary celebrations of the birth of
Kwame Nkrumah, Ghana's first president, and has the commemorative text "
Centenary of the Birth of Dr. Kwame Nkrumah". Due to periods of "sustained high inflation" and "perennial depreciation of the currency", the
Bank of Ghana on 29 November 2019, announced the issuance of a new 2-cedi coin and as well as new 100 and 200-cedi banknotes. Existing 1 and 2 cedi banknotes remain legal tender, though these denominations will be gradually replaced by coins to reduce costs. The third Cedi has been losing value continuously since it was introduced. In 2014, the inflation rose rapidly as the value of the third cedi fell to a fourth of its original value. The devaluation was temporarily halted in the last quarter of 2014 as the currency stabilized due to a pending IMF bailout of Ghana. Due to its negligible purchasing power, the one pesewa coin is rarely seen in circulation. In September 2021, the Bank of Ghana began the process of withdrawing GH₵1 and GH₵2 notes from circulation to encourage the use of coins of their corresponding face values. In August 2022, accelerating inflation and continued economic mismanagement has caused the cedi's value to drop to 10 U.S. cents (GH₵10 = US$1). , the annual inflation rate of 37.2% as reported by the Ghana Statistical Service was the highest since 2001. From the end of 2021 to 2024, the cedi was the world's worst-performing currency, depreciating to around GH₵15 per U.S. dollar in October 2022 before reaching its current all-time low of GH₵16.4 per U.S. dollar in November 2024. However, in 2025, the cedi made a remarkable turnaround, becoming the world's best-performing currency. , the exchange rate is around GH₵12.25 per U.S. dollar. Ghana’s President John Dramani Mahama said his government is promoting fiscal discipline and economic stability as part of its “Resetting Ghana” agenda. Speaking to Zambia’s National Assembly, he highlighted steps taken since returning to office, including reducing the number of ministers and deputies to 58 to lower government costs and restructuring public debt with a focus on investing in human capital. Mahama stated these reforms have contributed to a sharp drop in inflation—from about 23.4 % in late 2024 to 3.8 % in January 2026—and noted the Ghanaian cedi appreciated by 32 % in 2025. He also pointed to efforts to increase value from natural resources, including boosting gold output under the “Gold Board” and moving toward local processing of manganese and bauxite. == Coins ==