Authors: Eunice A. Agyepong, Lois M. Tankam, Bright Oti-Boateng, Edward Owusu-Ansah
Corresponding Author: Eunice A. Agyepong (eunagyepong @yahoo.com)
Abstract
Purpose: The purpose of this study is to ascertain the effects of the redenomination of the Ghanaian currency (cedi) on local trade.
Methodology: We use Statistical Package for Social Sciences (SPSS) in analysing the data gathered from trade participants in the Central Business District in Accra.
Findings: The results of the study show that the redenomination of the cedi has had a perceived positive impact on the credibility and portability of the currency, time spent in queues and in managing stores records and on service rate by sellers. The exercise has however had a negative impact on general price levels and very little effect on the safety of the currency.
Research Implications: This research can help provide a foundation for future research on currency redenomination and commerce (both local and foreign) in Ghana and in Sub-Saharan Africa.
Practical Implications: This research will be useful to officials in the Bank of Ghana in assessing the impact of the redenomination and to policymakers in making policies to improve commerce in Ghana.
Originality/Value: This study is one of the few studies in Ghana focusing on ascertaining the effect of currency redenomination on local trade.
Key words: Redenomination, Local Trade, Ghana
