My parents and I were very happy yesterday evening to see this blue-and-yellow pamphlet, that is lying on my keyboard. It's from the Bank of Ghana, detailling the whys and wherefores of the re-denomination scheduled for July. In fact, ever since the announcement late last year of the redenomination of the Ghana cedi, such that
10,000 Ghanaian cedis will become, as from July this year, 1 NEW Ghanaian cedi, there have been a number of (silly) jingles on the radio, and a banner (quasi-permanent) on the front page of the Daily Graphic newspaper, and other newspapers so that the public becomes used to the "conversion".
This is what the government-supporting private paper, The Statesman wrote about it in its review of the year, 2006:
"The biggest change in the Ghanaian economy of 2006 was the announcement of the new Ghana Cedi, which will be launched in July 2007. Four zeros will be knocked off our current currency, making one new cedi equivalent to ¢10,000 in today’s money."
The pamphlet answers the following questions:
- why is there a need for redenomination?
- what is replacing the old notes and coins?
- what will be the relationship between the old and new notes and coins?
- will I lose value if I exchange my old notes and coins for new notes and coins?
- does it mean that the cedi is going to be devalued or revalued?
- what happens to the old notes and coins when the new notes and coins are introduced?
- what happens after the transition period?
- will this exercise lead to price increases?
- will this affect my wages and salaries?
Simply put -- and I am deliberately referring to #5, which might be of relevance to non-Ghanaians -- from July going, $US1 will be equivalent to 92Ghanaian PESEWAS. This is if we are operating from the assumption that currently $US1=9,200 Ghanaian cedis.
I find it all exciting.
Without a doubt, when at the annual conference of the incumbent government--the New Patriotic Party(NPP)--that was held in the Eastern region at the beginning of the year, the President John A Kufuor said that the new currency would be equivalent (almost) to a dollar, it made the opposition National Democratic Congress (NDC)quiver in its boots. Just a bit.
What I do know is that time is the only thing that will hold the real truth of it all...;-)
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