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Cedi re-denomination is soon to come – Kwakye of the IEA.

Following the escalating rate of inflation and the devaluation against the Dorla, Dr. John Kwakye, Director of Research at the Institute of Economic Affairs (IEA), has suggested that another re-denomination of Ghana’s currency, the Cedi, is imminent.

Ghanaians should prepare for another redenomination, he hinted, unless the country’s economic leaders control inflation and depreciation.

The rate of inflation in August was 33.9 percent. This represents an increase of 2.2 percent over the 31.7 percent number from July.

Dr Kwakye tweeted “Phasing out 1 and 2 cedi notes from the economy as planned by BoG, will not only put pressure on the 5 cedi notes, but will also further fuel inflation.

“If we don’t rein in inflation and depreciation, it won’t be too long before we undertake another redenomination.”

The Cedi (¢) was changed to the Ghana Cedi (GH) in July 2007, making ten thousand Cedis equal to one Ghana Cedi.

The intrinsic value of the currency was unaffected by the re-denomination; “the value will be the same.”

The Central Bank cited the growing difficulties in maintaining accounting and statistical records as well as issues with accounting and data processing software as two of the justifications for the re-denomination.

Disclaimer: The opinions expressed in this publication do not in anyway reflect the opinions of State News Ghana

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