Finance

100 dollars to Ghana cedis: How to convert US Dollar to Ghana Cedis

100 dollars to ghana cedis: How to covert US Dollar to Ghana Cedis

As the world’s primary reserve currency, many countries peg their currencies against the U.S. Dollar, including the Ghana Cedis. Ghanaians who get money from the diaspora or those who return to the country after a trip abroad with foreign currency, particularly the U.S. dollar, will want to convert 100 dollars to Ghana Cedis to use in their country.

But how can this conversion be done? Before this article delves into the technicalities of currency conversion, readers need to know more about the two currencies mentioned in this piece.

About the US dollar

About the US dollar

The US dollar is the official currency of the United States of America and is also widely used as a reserve currency around the world. It is abbreviated as USD or simply as $.

The US dollar is issued by the Federal Reserve, which is the central bank of the United States. The Federal Reserve has the authority to control the supply of dollars in circulation, which influences the currency’s value. The value of the US dollar can fluctuate based on various factors such as economic conditions, government policies, and global events. The most widely used currency worldwide is the US dollar. According to the Bank for International Settlements, it accounts for around 88 per cent of all foreign exchange transactions.

The US dollar is the most commonly traded currency in the world and is used as the primary currency in international trade. It is also used as a benchmark currency for commodity prices such as oil and gold. The US dollar is widely accepted in many countries around the world, and many businesses and individuals prefer to hold their wealth in dollars due to its stability and liquidity.

Overall, the US dollar plays a significant role in the global economy and is an essential currency for international trade and investment.

ALSO READ: How the Dollar to Naira black market rates in Nigeria fare today, impact economy

History of the US dollar

The history of the US dollar (USD) dates back to the 18th century when the newly independent United States of America needed a currency to replace the British pound. In 1792, the US Congress established the dollar as the official currency of the United States and created the United States Mint to produce coins.

Initially, the US dollar was based on the Spanish dollar, which was widely used in the Americas at the time. The Spanish dollar had a fixed weight of 27.468 grams of silver, which was divided into 8 reales. The Spanish dollar, also known as the piece of eight or the peso, was a silver coin that was widely used as currency throughout the world in the 16th, 17th and 18th centuries. It had a fixed weight of 27.468 grams of silver and was divided into eight smaller units, known as reales. Each real was equivalent to 3.437 grams of silver.

The US dollar was initially defined as equivalent to 371.25 grains (24.057 grams) of silver or 1/20th of a Spanish dollar.

In 1834, the US government changed the definition of the dollar to be based on gold instead of silver, to stabilize the currency and promote international trade. The gold standard meant that the US dollar was convertible to gold at a fixed rate of $20.67 per ounce.

During the 20th century, the US dollar became the dominant currency for international trade and finance, due to the strength of the US economy and the stability of the currency. In 1944, the Bretton Woods Agreement established the US dollar as the world’s reserve currency, meaning that other countries could hold US dollars as a store of value and use them to settle international transactions.

In 1971, the US government ended the convertibility of the US dollar to gold, effectively ending the gold standard. Since then, the US dollar has been a fiat currency, meaning that it has no intrinsic value and is not backed by a commodity such as gold. Today, the US dollar remains the world’s dominant currency for international trade and finance and is used as the standard currency for many commodities such as oil and gold.

About the Ghana cedi

About the Ghana cedi

The Ghana cedi is the official currency of Ghana. It is denoted by the symbol “₵” and is subdivided into 100 smaller units called pesewas. The word “cedi” comes from the Akan language, which means “cowry shell”.

The Bank of Ghana is the central bank of the country and is responsible for issuing and regulating the currency. The bank periodically introduces new banknotes and coins to keep up with the changing economic conditions and to enhance security features.

The current set of banknotes was introduced in 2019 and features prominent national figures, landmarks, and cultural symbols of Ghana. The denominations of the banknotes are 1, 2, 5, 10, 20, 50, and 100 cedis. The coins are available in denominations of 1, 2, 5, 10, 20 and 50 pesewas, as well as 1 cedi.

The exchange rate of Ghana cedi against other major currencies, such as the US dollar and the Euro, can fluctuate depending on various factors such as economic conditions, government policies, and global events.

The Ghana cedi is widely used in Ghana for everyday transactions, and it is also an important currency for international trade and commerce in the region. Many businesses and individuals in Ghana prefer to hold their wealth in cedis. The currency is also widely used by tourists and visitors to the country.

ALSO READ: Top 10 jobs that are available in finance

History of the Ghana cedi

The Ghana cedi is the official currency of Ghana. It was first introduced in 1965, replacing the Ghanaian pound at a rate of 2.4 cedis to 1 pound.

Over the years, the value of the cedi has fluctuated due to various economic and political factors. In the early 1980s, Ghana experienced a severe economic crisis, and the cedi was devalued several times, losing much of its value against major currencies such as the US dollar.

In 2007, the government of Ghana introduced a new currency called the “Ghanaian cedi” at a rate of 1:10,000, effectively removing four zeros from the previous currency. The new currency was aimed at making transactions easier and more efficient.

However, despite this change, the value of the cedi continued to fluctuate due to various factors such as inflation, government policies, and global economic conditions. In recent years, the cedi has been steeped in fluctuations of various kinds. In September 2022, the Cedi was named the worst-performing currency in the world after it lost 45.1 per cent of its value to the US dollar, according to the Hanke Currency Watchlist.

100 dollars to Ghana Cedis

100 dollars to Ghana Cedis

The exchange rate for US dollars (USD) to Ghanaian cedis (GH₵) currently is 1 USD = 12.30 GHS, as of the time of writing this piece.

Therefore, 100 USD would be equivalent to approximately 1,230 GH₵.

ALSO READ: Why business funding jobearn is important to grow your business

Previous ArticleNext Article
Send this to a friend