Gov’t may re-denominate cedi to keep up with the dollar – Peter Toobu Lanchene

Member of Parliament (MP) for Wa West Constituency, Peter Toobu Lanchene, has predicted that the government may resort to re-denominating the Ghana Cedi if it continues to weaken against the US dollar.

According to the opposition MP, who is also a member of the Defense and Interior Committee of Parliament, the government might consider this option if the currency reaches GH₵20 to US$1.00. He noted that this could make the Cedi appear more stable as the country approaches the general elections.

“Very soon when a dollar hits GH₵20 (200,000 old cedis), there may be another re-denomination where the zero will be taken away bringing the artificially rate to $1 = GH₵2,” Mr. Toobu argued on Facebook.

The former senior police officer also mocked Vice President Dr. Mahamudu Bawumia for his inability to ‘save the cedi.’ He further questioned the ‘best economist’ accolade attributed to the Vice President, arguing that Dr. Bawumia would likely resort to re-denomination as a ‘superficial fix’ for the cedi’s depreciation.

“Re-denomination is the talisman of their best economist who is attempting to lose badly in the 2024 General Elections,” he wrote.

Prior to January 2017, the exchange rate was US$1.00 to GH₵4.30. However, at the time of filing this report, the exchange rate stands at US$1.00 to GH₵15.60.