The Ghanaian Currency Explained: What does GHC stand for?

Wondering what GHC stands for and how it works? We break down the basics of the Ghanaian currency in this post!

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The Ghanaian Currency Explained: What does GHC stand for?
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Ghanaian Currency Explained

The Ghanaian currency is the Ghanaian Cedi (GH¢). The symbol for the Ghanaian cedi is GHS. It is made up of 100 pesewas, or kwachas. One pesewa equals one hundredth of a kwacha.

Currency exchange in Ghana:

The official exchange rate is GHS 1 = $0.0011 at the moment, but you can also find rates on sites like xe and oanda that are different from this. These rates are set by market forces and will change depending on what people are willing to buy and sell for.

How does it work?

The money in your pocket goes into a bank account that's registered in a foreign currency, usually dollars or euros. You then tell the bank how much you want to take out in Ghanaian cennies and they convert it for you accordingly.

Who can use it?

Anybody with a bank

 

What is a Ghanaian Cedi?

The Ghanaian currency is the Ghanaian Cedi (GH¢) and it is made up of 100 pesewas, or kwachas. One pesewa equals one hundredth of a kwacha.

 

The History of Ghanaian Currency

The Ghanaian cedi was introduced in 1965 to replace the British West African pound at a rate of 1 Ghanaian cedi to 2½ British West African pounds. After Ghana's independence from Britain, the Bank of Ghana issued new banknotes with the face of Kwame Nkrumah, prime minister and president of Ghana, on the obverse. The name cedi comes from the Akan word for copper, which is an important mineral resource in the country.

In 1967, coins were introduced in denominations of 1 pesewa or kwacha, ½ pesewa or kwacha, 1 pesewa or kwacha (copper), 5 pesewas or kwachas (copper) and 10 pesewas or kwachas (silver).

 

Why does the currency need to be changed?

The Ghanaian currency needs to be changed because the currency that we had, the Ghana cedi, was so strong that it became a burden on the country. The Ghana cedi is now worth less and is not as valuable as it once was.

 

Differences between different currencies in terms of money in your pocket

There are a few different currencies in Africa that you might come across. One of the most popular is the Ghanaian cedi. The Ghanaian cedi is one hundred pesewas, and there are four pesewas in a kwacha. It's also worth $0.0011 USD per Ghanaian cedi.

The Zambian currency is called the Zambian kwacha which trades at 1 BTC = ZMK 2,200 = $1 USD. In Zimbabwe, the Zimbabwean dollar trades at 1 USD = ZWD 0.00388723 or $1ZWD = $2USD

In Nigeria, the Nigerian Naira trades at 1NGN= $0.00536

 

How is the currency exchange rate calculated?

The currency exchange rates are set by market forces, which means that they vary on a daily basis. The Ghanaian Central Bank (Bank of Ghana) is the only institution authorized to issue money in the form of banknotes and coins in Ghana. Their primary concern is inflation control, but they also have an obligation to maintain stability in the external value of the Ghanaian cedi.

The exchange rate is calculated based on supply and demand for two currencies. If a currency has a high demand relative to its supply, then its value will go up. If it has low demand, then its value will go down. For example, if more people are buying euros than selling them, then the euro's value will go up against other currencies.

 

How do you convert money from Ghanaian Cedi to another currency?

The Ghanaian currency is the Ghanaian Cedi (GH¢). The symbol for the Ghanaian cedi is GHS. It is made up of 100 pesewas, or kwachas. One pesewa equals one hundredth of a kwacha.

Currency exchange in Ghana:

The official exchange rate is GHS 1 = $0.0011 at the moment, but you can also find rates on sites like xe and oanda that are different from this. These rates are set by market forces and will change depending on what people are willing to buy and sell for.

How does it work?

The money in your pocket goes into a bank account that's registered in a foreign currency, usually dollars or euros. You then tell the bank how much you want to take out in Ghanaian cennies and they convert it for you accordingly.

Who can use it?

Anybody with a bank account

 

Conclusion

If you’re looking to visit Ghana, one of the first things you need to know is how much you’ll be spending. The Ghanaian Cedi is the official currency in Ghana and is used for most transactions within the country. The exchange rate can change from one day to the next, so it’s important to keep up with the current rates before you travel as well as what types of bills are in circulation, who can exchange currencies and how to exchange money in Ghana.

The Ghanaian Cedi is a symbol of pride and nationalism, but also a representation of the country’s history. If you’re planning on visiting Ghana, make sure you understand what the currency is and how it can affect your trip.