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HOW GHANIAN & ZAMBIAN CURRENCIES WENT FROM “WEAK” TO “STRONG”
Currency Redenomination is the process of changing the face value of Bank notes & coins in circulation. Its normally done due to high inflation that made the currency units so small that only large denominations of currency are in circulation and it is symbolic as it has no impact on the exchange rate with other currencies.
It’s simply done with a reduction of Zeros (1ØØØ) on bigger notes & overnight a 10 000 Note will be 10 while 1000 will be 1 because of risks of carrying stacks of bills to buy ordinary products, the strain on the system & ATM may fail to handle large sums of money. Instead of buying a loaf of bread for 50 000, it can be bought at 50. It may have a psychological impact on the population that hyperinflation is over which is why some African Economists have called it “Voodoo Economics”.
Other African countries have done it with Zimbabwe 🇿🇼 having done it 4 times and last in 2008 with its 10 000 000 000 note. Other African countries include Algeria 🇩🇿, Zaire (DRC 🇨🇩), Angola 🇦🇴, Ghana 🇬🇭, Zambia 🇿🇲, Mozambique 🇲🇿, Sierra Leone 🇸🇱, Uganda 🇺🇬, Sudan 🇸🇩, Guinea 🇬🇳, Mauritania 🇲🇷, Madagascar 🇲🇬, Equatorial Guinea 🇬🇶, Mali 🇲🇱.
