Sixty years ago, Ghana made a bold decision to assert its economic sovereignty by introducing the cedi, a move that would forever change the country’s monetary landscape. Today, as the nation celebrates the cedi’s diamond jubilee under the theme, “A Symbol of Sovereignty, Stability and Economic Resilience,” attention turns not only to the currency itself, but to the institutions that have upheld its value, circulated its notes, and protected its purchasing power—Ghana’s banking sector. The milestone raises an essential question: is Ghana’s banking sector truly prepared for the next era of the cedi?
The Ghanaian cedi was born out of the need for post-colonial identity and autonomy. On July 19, 1965, it replaced the Ghanaian pound at a conversion rate of 2.4 cedis to one pound. The move was a statement of economic self-determination, aligning the nation’s monetary system with its political independence, which had been achieved eight years earlier in 1957. Over the years, the cedi became more than just a medium of exchange; it became a symbol of national pride.
Ghana’s banking institutions played an indispensable role in this monetary shift. The Bank of Ghana (BoG), established in 1957, became the central anchor of Ghana’s financial system. It assumed responsibility for issuing currency, regulating financial institutions, and stabilizing the monetary environment. Commercial banks followed closely, facilitating the circulation of the cedi through deposit services, loans, and support for trade and commerce.
Throughout the 1970s and 1980s, as inflation surged and fiscal discipline faltered, the cedi faced significant devaluation. Ghana’s banking sector struggled to maintain credit quality, and confidence in the currency waned. Yet, even in turbulent times, banks remained at the center of economic life, providing the critical link between monetary policy and the real economy.
Redenomination and Reform: Banking Through Structural Change
In July 2007, Ghana redenominated its currency, knocking four zeros off the old cedi and introduced the Ghana cedi (GHS). This reform was designed to simplify transactions, improve accounting systems, and restore public trust in the value of the currency. The redenomination was largely successful in achieving these goals, at least in the short term, and banks were instrumental in the transition.
Commercial banks, microfinance institutions, and rural banks worked together with the BoG to recalibrate ATMs, re-educate customers, and implement new cash handling systems. This episode was an evidence to the operational capacity of Ghana’s banking sector when given the right policy direction.
However, the years that followed would test the sector’s durability. A growing number of financial institutions, particularly savings and loans companies, operated under weak regulatory oversight. By the mid-2010s, the sector had become bloated, with many institutions facing liquidity crises and capital inadequacies. Trust in financial institutions declined sharply, culminating in a banking sector clean-up between 2017 and 2020.
The clean-up, which saw the revocation of licenses for over 400 financial institutions and the creation of Consolidated Bank Ghana, was costly—estimated at GHS 21 billion—but necessary. It highlighted both the fragility and the potential of Ghana’s banking infrastructure. In its wake, the BoG introduced new corporate governance directives, increased capital requirements, and tightened supervision.
Banking Sector at a Crossroads: Rebuilding after the 2020 Crisis
Ghana’s banking sector experienced a watershed moment between 2017 and 2020, when undercapitalized institutions triggered a crisis. Five major banks—Construction Bank, Royal Bank, UniBank, Beige Bank, and Sovereign Bank—were merged to form the Consolidated Bank Ghana Limited in 2018 as part of regulatory action to preserve stability.
By mid‑2024, two‑thirds of banks had met capital adequacy standards, supported by the Ghana Financial Stability Fund, which injected roughly GHS 4.9 billion into recapitalization. Yet the non‑performing loan (NPL) ratio remained high— reaching 24.1 percent as of June 2024, marginally improving to 21.8 percent by December 2024 and rise slightly again to 22.6% in 2025—raising concerns about future credit risk and capital resilience.
Governance issues, especially among state‑owned banks, remain a challenge. Some institutions still fall short of the Bank of Ghana’s corporate governance directives, making systemic integrity fragile.
Still, regulatory oversight has tightened, encouraging stricter board accountability, risk monitoring, and compliance—developments crucial for sustaining trust in banking and, by extension, trust in the cedi.
A Stronger Cedi, A Smarter Banking Sector?
Recent macroeconomic developments suggest a cautiously optimistic outlook. After years of decline, the cedi has staged a strong comeback in 2025. According to the Bank of Ghana, the currency appreciated by over 42% in the first half of the year, making it the best-performing currency globally during that period. This performance was driven by a combination of tight monetary policy, increased foreign reserves, and fiscal consolidation supported by the International Monetary Fund (IMF).
Inflation, which hit 54% in late 2022, has steadily declined to around 13.7% as of June 2025. The BoG has maintained a monetary policy rate of 28% to anchor inflation expectations and stabilize the currency. Ghana’s trade surplus of $5.6 billion and current account surplus of $3.4 billion in the first half of 2025 have also helped ease pressure on the cedi.
Within this macroeconomic context, Ghanaian banks have responded by improving liquidity positions, restoring capital buffers, and increasing digitization. There is evidence of stronger corporate governance frameworks, enhanced risk management practices, and renewed commitment to customer-centric services. However, challenges remain. Non-performing loans are still high, and access to credit for SMEs is limited. Many customers, particularly in rural areas, remain outside the formal banking system.
As Ghana celebrates the cedi at 60, commercial banks are not standing on the sidelines. From hosting their own anniversary events to partnering with the BoG on awareness drives, financial institutions are actively engaging with the Cedi @60 narrative. This renewed public focus presents banks with an opportunity to rebuild trust, especially in communities that felt the brunt of the financial sector reforms.
Cedi Digitalization: Opportunity or Overreach?
One of the most ambitious initiatives undertaken by the Bank of Ghana in recent years is the development of a Central Bank Digital Currency (CBDC) known as the eCedi. The eCedi pilot, launched in 2021, has continued to gain traction and is expected to enter broader circulation by the end of 2025. It is designed to complement the cash, improve transaction efficiency, and deepen financial inclusion, especially in underbanked areas.
The eCedi has the potential to transform banking in Ghana. It allows for offline transactions via smart cards or mobile devices, a feature particularly valuable in areas with limited internet access. If properly implemented, the eCedi could reduce the cost of printing physical currency, increase the transparency of transactions, and integrate seamlessly with existing payment platforms like GhIPSS, Mobile Money, and GhanaPay.
Yet the road ahead is not without obstacles. Many commercial banks are expected to adjust their digital infrastructure to accommodate the CBDC transactions. Concerns over data privacy, cybersecurity, and interoperability remain unresolved. Additionally, customer education is essential; a successful eCedi launch depends on public trust and understanding of how the digital currency works.
To fully leverage the eCedi’s promise, banks must embrace innovation. They need to invest in secure digital platforms, train staff on new financial technologies, and collaborate with fintech firms to offer tailored digital services. The BoG has already partnered with Emtech and other private players to develop sandbox environments for fintech testing. Banks that fail to evolve, risk being left behind in the next phase of Ghana’s financial revolution.
Beyond the 60 Years: What Ghana’s Banks Must Do
As Ghana’s financial ecosystem evolves, its banks must rise to the challenge of transformation by embedding the eCedi—the Bank of Ghana’s digital currency—into their core operations. Integrating eCedi wallets and APIs into banking systems will be key to unlocking new efficiencies and extending financial inclusion, particularly in rural areas where offline and token-based use cases will matter most. But successful integration will depend not just on infrastructure upgrades, but on comprehensive staff training to ensure seamless customer interactions.
Equally important is the need for banks to radically improve the digital customer experience. From mobile apps to online banking platforms, the focus must shift to usability, 24/7 uptime, and overall service reliability. Ghanaian customers increasingly demand fast, secure, and intuitive digital services—and any lag in meeting these expectations could result in a shift toward more agile fintech competitors. Collaboration rather than competition, therefore, becomes essential, with banks encouraged to deepen partnerships with fintechs through GhIPSS rails, open APIs, and sandbox innovations.
Banks must also bolster their internal foundations, particularly in risk management. Non-performing loan (NPL) ratios must be brought down below the critical 15 percent threshold through improved credit assessment, monitoring, and recovery frameworks. In tandem, maintaining capital buffers above regulatory minimums will be crucial in ensuring resilience, especially amid economic shocks or inflationary pressures. A strong risk management culture can help banks sustain lending without compromising stability.
Moreover, Ghana’s banking sector must focus on building and sustaining public trust. The momentum from the Cedi @60 celebration presents an opportunity to continue financial literacy and digital currency education campaigns. When customers feel secure, informed, and empowered, adoption rates rise—be it for eCedi wallets or broader digital finance tools. Key metrics such as increased wallet registrations, rising digital transaction volumes, falling NPL ratios, and improved app ratings will help gauge progress.
Beyond National Borders: Regional Integration and the Cedi’s Future
In the coming years, the future of the cedi—and by extension, Ghana’s banking sector—will be shaped by regional and continental dynamics. Ghana’s membership in the African Continental Free Trade Area (AfCFTA), headquartered in Accra, places it at the heart of efforts to create a single African market. The success of AfCFTA will depend on the ease of cross-border payments, currency convertibility, and financial system interoperability.
Banks have a critical role to play in this integration. By developing correspondent banking relationships across Africa, facilitating trade finance, and supporting fintech-driven remittance platforms, they can help position the cedi as a stable, trusted currency within the region.
There is already some movement in this direction. Ghana’s central bank has expressed interest in integrating with payment systems in countries like Nigeria and Kenya. Discussions are also ongoing about linking GhIPSS with India’s Unified Payments Interface (UPI), a move that could open new corridors for trade and remittances between Ghana and one of its top trading partners.
Such efforts are vital if Ghana is to strengthen the cedi’s international standing. But they also demand that banks elevate their technical capabilities, regulatory compliance, and customer service standards to compete on a larger stage.
Preparing for the Next 60 Years
As Ghana celebrates the cedi at 60, it does so with both pride and pragmatism. The currency has endured six decades of economic booms and busts, political change, inflationary cycles, and technological disruption. Through it all, Ghana’s banking sector has remained a key player—sometimes a stabilizer, sometimes a reform target, but always essential to the country’s financial journey.
The next era will require more than resilience. It will demand innovation, transparency, digital dexterity, and regional engagement. The eCedi, fintech partnerships, sustainable banking practices, and cross-border integration are no longer optional—they are imperative.
Ghana’s banks have come a long way. But with the cedi entering a new chapter in an increasingly digital, interconnected, and competitive world, the question remains not only whether they are ready—but whether they can lead.
If the lessons of the past 60 years have taught us anything, it is this: the value of a currency is ultimately rooted in the strength of its institutions. And in Ghana, the institutions must now rise to meet the next challenge. But whether Ghana’s banking sector can enter the next era with confidence hinges on its ability to deliver on promise—through trust, innovation, inclusivity, and resilience.
As fireworks mark the milestone anniversary on July 19, 2025, the future spotlight shifts: not only on a 60‑year history, but on whether Ghana’s banks can carry the cedi forward for sixty more years.