Do you send money to Ghana from the UK? Or Did you ever wonder about the value of the UK’s pound sterling in Ghana? In this article, we will talk about the importance of the Pound Sterling in one of the African states, Ghana. We will also look at the historical perspectives of both currencies and try to know the exchange rate of these two countries in different eras of history. This article will also walk you through the history of both currencies.
Let’s take a look at the history and evolution of Ghana’s currency.
Ghanaian Cedi: – Before becoming independent from British colonial rule, Ghana used the British West African Pound. It was the commonly used currency of the British colonies in the region at that time. Ghana’s first new and independent currency was Ghanaian Pound which remained in circulation from the year 1958 till 1965. So at that time, money transfer to Ghana from the Uk was easy due to the same currency on both sides.
Ghana decided in the year 1965 to abandon the British colonial monetary system and adopt the globally accepted decimal system. The African Name Cedi was introduced from 1965 to 1967 as a replacement for the old British pound system.
From the year 1967 until 2007, the new Cedi was equal to about half a Pound Sterling. Decades of political turmoil and other uncertainties inside of Ghana coupled with deteriorating law and order situation pushed inflation upwards to the point where the government had to introduce the biggest ‘’new Cedi’’ banknote in the year 2007, which was of 20,000/- denomination. And even this note had a value of about 2 USD. This new Cedi wa0s replaced by the new currency titled the Ghana Cedi. And it went on to become the only currency unit issued in the African continent with the highest denomination.
Now let’s take a look at the history of the British Pound Sterling briefly.
Pound Sterling: – The Name Pound Sterling finds its origins in the Latin word “Libra”, which means balance and weight. The first Pound coin made its appearance in the market in the year 1489 during the reign of Henry VII. The notes of the Pound begun to circulate in the market in the year 1694, soon after the Bank of England was founded. A surprising fact about these Pound notes is that they were handwritten originally. The complex system of pennies and shillings of Pounds was in vogue till as late as 1971 – the year when the decimal system was properly introduced.
Also, the mechanization of coin minting was done in the year 1660, and features of side lettering were introduced in its design in order to eliminate money clipping.
This brief insight into the history of both the Pound Sterling and Ghana Cedi is enough for us to understand the exchange rate of both currencies.
Now, let’s look at the value of the UK Pound in Ghana in current times.
The value: – As of the moment of writing this article, the exchange rate of one British Pound Sterling (1 GBP) equals 8.1172741 Ghanaian Cedi. So online money transfer to Ghana is a good way to save money from the exchange rate.
But, it must also be kept in mind that these exchange rates are not locked at a certain point and keep fluctuating. Besides, another factor is that the money exchange companies also keep a margin for their profit in these exchange rates to make a profit in order to continue and sustain their business and stay in the market.
Conclusion: – The discussion about the history of these two currencies is enough for us to get a fair idea about the link between the currencies and the difference between the values of these two. Needless to say that it is always a little difficult to understand the connection between two currencies and the difference in their exchange rates without first trying to look into the historical perspective of both the currencies as well as the relationship between the two concerned countries. Most of the expatriates from Ghana in the UK send money to Ghana online to support their families.