The Portuguese began trading in the Gold Coast (Ghana) in 1482, the Dutch in the 16th Century, and the British established their first fort there in 1645. In 1874, the British defeated the Ashanti and declared the Gold Coast a Protectorate. Togo was a German protectorate until August 26, 1914 when the British and French jointly occupied Togo. The western portion became British Togoland. On March 6, 1957, the Gold Coast and British Togoland were merged to form the newly independent country of Ghana.
Although Spanish dollars circulated in the Gold Coast during the 1700s, most trade was conducted using gold dust weighed in ounces. The Company of Merchants Trading to Africa (formerly the Royal African Company) had silver coins struck for the Gold Coast in 1796. Sixteen ounces of silver were equal to one ounce of gold with 1/2 ounce equal to an ackee and 1/16 of an ounce equal to a trade taku.
Spanish Dollars were also used in the Gold Coast with 4 Spanish Dollars equal to 1 British Pound Sterling to September 30, 1843 and 4.80 Spanish Dollars equal to 1 Pound Sterling until it was demonetized in 1880. British Pounds Sterling (GBP) circulated in the Gambia after it became colonized, but French and Spanish coins were also legal tender, and when the Latin Monetary Union was founded, Belgian, Swiss and Italian 5-franc pieces were also made legal tender until they were demonetized in 1922.
German Marks (DEP) had circulated in Togo while it was a German protectorate, but after the British occupied the western part of Togo in 1914, British Pounds Sterling and West African Pounds began circulating there. The Pound was divisible into 20 Shillings and 240 Pence.
On July 1, 1913, the West African Currency Board was established originally to issue coins, but the Constitution was revised in November 1915 to allow for the issue of Pound (XWAP) banknotes at par with the British Pound Sterling. The West African Currency Board became a model for other currency boards in Africa and elsewhere. The Pound was divisible into 20 Shillings or 240 Pence.
After gaining independence, Ghana replaced the British West African Pound with the Ghana Pound (GHP) at par on July 14, 1958. The Ghana (old) Cedi (GHO) replaced the Ghana Pound at par on July 19, 1965. A Revalued Cedi (GHR) replaced the old Cedi on February 17, 1967 with 1 Ghana Revalued Cedi equal to 1.2 Ghana Old Cedi. This also gave the government an opportunity to remove the picture of deposed ruler Kwame Nkrumah from the currency. Ghana introduced a new Cedi (GHC) on March 9, 1979. Old cash Cedis were exchanged at the rate of 10 Old Cedis = 7 New Cedis for up to 5000 Cedis to "reduce excessive cash holdings," and 10 Cedis = 5 New Cedis for amounts over 5000 Cedis. In effect, this was a currency confiscation by the government. On July 1, 2007, the New Cedi replaced the old Cedi at the rate of 1 New Cedi (GHS) equal to 10,000 old Cedi (GHC). The Cedi is divisible into 100 Pesewas. The Pound and Cedi have been issued by the Bank of Ghana. |
