The continuous devaluation of our local currency against the major foreign trading currencies after the West African Pound for British west Africa colonies, the Ghanaian Pound (1958-65) for post independent Ghana legal tender the new cedi that replaced the Ghanaian Pounds, which also give way for the Ghana cedi we have today which was issued in June 2007. After the cedi has been re-denominated to give value to it (Ghana Cedi) which started at 0.90. Gp – 1us$. But now at 1ghs -5.20 $.
In all the four historical levels of our currency the era from the new cedi to the present Ghana cedi have shown unimaginable devaluation without any government demonstrated capacity to at least maintain the rate where they pick it.
There is evidence based prove that most colonies that still hold on to their colonial master’s currency have a better valued currency than their counterpart who opt for their local named currency. Like Ghana, Nigeria e’tal, with this trend of persistent depreciation of our currency and no hope of arresting it anytime soon, we therefore wish to propose a reverse from the current Ghana cedi back to the post independent Ghana pound.
Our cedi from July 1965 till today has in most cases rated among the weaker currencies and our National leaders are not showing any visible signs of giving value to our legal tender except quire and petty needless changes just to remove a past leader’s face from the bank note, and changing features and outlooks which does nothing to the problem of persistent and continues fall of our cedi an indication a stable cedi against the major trading partners will forever be a dream, it is in the face of this worrying situation of concern that we wish to re-emphasized on our call for a reverse of the current legal tender the Ghana cedi back to the Ghana pound to gain value for our bank notes.
Dollarization of the economy and government policy on trade agreements that allows foreign businesses to repatriate 80% of profit to offshore account is disincentive to currency appreciation of the host bank note. It is worrying to have hotels, boutiques, houses, lands, among others are all traded in pounds and dollars instead of the cedi. The Government has a greater responsibility ensuring value and stability of our legal tender/bank notes, and where the cedi is proving untamed and since we are Africans and Ghanaians in particular we wish to quote a Ghanaian proverb “Sankofa wonky ere) meaning it is not an wrong to go back for an old practice or thing thank can serve a purpose.
Benin, Burkina Faso, Cote de voire, Guinea Bissau, Mali, Niger, Senegal and Togo still maintain their colonial powers denominations, whiles Namibia, Liberia, Zimbabwe uses the dollar with others using rupee, pounds and the rest, it won’t be an error to go back for the colonial master’s pound if it can guarantee a stronger and competitive currency.
Whiles the Zambia’s Kwacha (ZMW) have not experience many changes in features and outlook as our new and Ghana cedi it has been one of the strongest currencies in Africa and won the strongest currency in Africa in 2013 a feat Ghana cedi has not attained. The 2007 redenomination that move four digits made the Ghana cedi the highest denominated currency unit used in Africa but were short lived for some few months and started falling till today.
In line of the above we wish to once again reiterate our plea “reverse the Ghana cedi to Ghana pound.
Felix Djan Foh – Prez. PIRAN