Consumers and businesses alike in Ghana are struggling with a change in the denomination of country's currency-the cedi, symbol GHC-scheduled to take effect in July 2007. Since January 2007, the Bank of Ghana has been running an education campaign to help with the transition. The campaign consists of TV ads, and notices showing the effect of the conversion, which businesses are required to post.
According to a preview of the change published by The Mail & Guardian (Johannesburg) on November 27, 2006, "Ghana's cedi currency will shed four zeros."
There practical reasons for changing the denomination of the currency. One of the main reasons is that Ghana is largely a cash economy-paying with a check is rare-and for transactions involving values of any size cash had to be transported in suitcases or large bags. And carrying something like that was an advertisement to criminals.
Also, even though the ATM network in Ghana is small, there has been a considerable burden keeping the ATM's stuffed with currency. Just counting out huge amounts of cash became a burden imposing a barrier on business transactions generally.
Currency redenomination is measure used by developing countries recovering from hyperinflation-as is the case in Ghana-but redenomination is not normally associated...