In accordance with Section 41 (4) of the Bank of Ghana Act 2002, (Act 612), the Bank of Ghana hereby announces for the information of Banks, rural banks, savings and loans companies, other financial institutions and the general public the following guidelines on the implications of the re-denomination of the cedi as regards consumer pricing, exchange rate quotations, accounting systems and banking transactions.

With effect from 1st July 2007, the name of the national currency and respective symbols shall be Ghana cedi (GH¢) and Ghana pesewa (Gp). The new currency shall be exchanged for the existing notes and coins at all rural banks, savings and loan companies, commercial banks and the Bank of Ghana.

The Ghana cedi and the Ghana pesewa as well as the existing cedi and the pesewa will be in concurrent circulation for a six-month transition period, commencing from 1st July 2007 to the end of December 2007.

SECTION I: PRICING OF GOODS AND SERVICES

During the transition period, pricing of goods and services shall be made in both the existing cedis and the Ghana cedi (GH¢) and Ghana pesewa (Gp).

a). In translating prices from the existing cedi to the Ghana cedi (GH¢) and Ghana pesewa (Gp), prices below fifty cedis, or lower than half the Ghana pesewa (Gh¢0.0049) shall be disregarded while prices higher than or equal to fifty cedis or half Ghana pesewa (Gh¢0.0050) shall be rounded upwards to one Ghana pesewa. Prices currently prevailing are already generally rounded off to the nearest 100 cedis (or equivalent to Gp1) and it is expected that the rounding off will not significantly affect price levels.

b). Starting from 1st May 2007, all the stakeholders shall display and quote prices, charges, fines, fees, taxes and tariffs in both the old and new currencies.

c). From 1st May 2007 to 30th June 2007, prices and commission fees charged by banks shall be displayed at their head offices and branches in both cedis and Ghana cedis (GH¢) and Ghana pesewa (Gp).


SECTION II: EXCHANGE RATE QUOTATION

With effect from 1st July 2007, all exchange rate quotations shall be made in four digits to reflect international practice. Exchange rate quotations shall be made based on the following:

a) It shall be rounded off at the fourth decimal.

b) Figures at the fifth decimal equal or higher than half a Ghana pesewa shall be rounded upwards to one Ghana pesewa while the figures at the fifth decimal lower than half a Ghana pesewa shall be disregarded.

Example:

SECTION III: ACCOUNTING SYSTEMS

A). From 1st July 2007 onwards all accounting data shall be prefixed by the new currency symbol GH¢ and Gp.

b). All approved budget estimates up to 30th June 2007 shall remain in cedis. From 1st July, 2007 all unutilized budgetary allocations shall be converted into Ghana cedi (GH¢) and Ghana pesewa (Gp).

c). Assets and liabilities in the books of accounts on or before 30th June 2007 shall be recorded in cedis while all assets and liabilities on the balance sheet as at 30th June 2007 shall be converted into Ghana Cedi (GH¢) and Ghana pesewa (Gp) from 1st July 2007.

d). Financial Statements for the half-year to 30th June 2007 shall be prepared in cedis. However, from 1st July 2007, figures in 30th June 2007 financial statements shall be converted into Ghana cedi (GH¢) and Ghana pesewa (Gp). Thereafter financial statements shall be prepared in Ghana cedi (GH¢) and Ghana pesewa (Gp).

e). Recording of Income and Expense transactions shall remain in cedis from January to 30th June 2007. From 1st July 2007, balances on both the revenue and expenditure accounts shall be converted into Ghana cedi (GH¢) and Ghana pesewa (Gp). Thereafter all transactions shall be recorded in Ghana cedi (GH¢) and Ghana pesewa (Gp).

f). Goods and Services shall be invoiced in cedis until 30th June 2007. Thereafter, from 1st July 2007 goods and services shall be invoiced in Ghana Cedi (GH¢) and Ghana pesewa (Gp).

g). All outstanding items on Cedi Reconciliation Statements shall be in cedis up to 30th June 2007. From 1st July 2007 figures in the reconciliation statements shall be converted into Ghana cedi (GH¢) and Ghana pesewa (Gp).