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Abstract
Following independence. Ghana’s currency, the cedi, was pegged to the pound sterling until 1971.36 During that period the cedi was devalued only once, in mid-1967. The collapse of cocoa prices during the late 1960s, however, forced the government to devalue again in December 1971, to moderate the domestic effects of a deterioration in the terms of trade. The government was toppled soon after the devaluation, and the cedi was revalued in steps and then pegged at ¢1.15 to the dollar in March 1973. During the remainder of the decade the authorities were generally unwilling to devalue the cedi: when faced with balance of payments problems, they tended instead to resort to ad hoc restrictions on trade and foreign exchange transactions. The 1973 parity was maintained until June 1978, when the cedi was devalued to ¢2.75 to the dollar. It was then kept unchanged until April 1983. when it was again devalued in the context of the Economic Recovery Program.
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