The New Cedi and a Few Ways Ghanaians Send Money Home
Sandwiched between Togo, Ivory Coast, Burkina Faso, and the Gulf of Guinea, is Ghana, which received its independence from the United Kingdom in 1957. Ghana has a national population well over 24 million citizens, while maintaining a large diaspora population as well.
Ghana ranked 7th according the Ibrahim Index of African Governance, which is a tool for evaluating how well governments provide for their citizens. Albeit in a better situation than many other of the 48 other African countries, Ghana is still besieged by corruption, crime, and other issues. These realities make it a priority for Ghanaians abroad to send money to their family in their homeland. There are a few different methods employed by those desiring to complete a money transfer to Ghana.
The currency used in Ghana is the cedi. It was reissued in July 2007, with 1 of the new edition equaling 10,000 of the old ones. The cedi is actually a well-valued world currency at this point, after previously being one of the worst valued.
The most classic method to send money to family in Ghana is via a bank to bank wire transfer. These transfers are very safe and reliable. This comfort does come with a price and delay, as fees are mountainous and waiting periods days long. All of this is assuming family members even have an active bank account.
The most active method of international money transfer is still based on moving money through third-party agent based locations. Senders go to a designated location to send money and recipients go to a local store to receive the funds. In this situation, banking relationships are not mandatory but adhering to location’s business hours, completing documents, and crowds of other customers is the norm.
The ability to send money online is definitely taking foot with those sending money to Ghana. Many expat Ghanaians are extremely well-educated and tech savvy, and enjoy the option to complete an online money transfer. A few services allow users to sign up online and have money sent a few different ways, namely through a reloadable debit card, which can then be used to withdraw cedi at local ATM’s.
Those completing an online money transfer via a reloadable debit card, are also putting a card in the hands of their recipients for the first time. Many people in Ghana, and other parts of Africa have never had a plastic card, be it a credit, debit, or even gift card.
No matter how Ghanaians abroad send money to their family, it is certain that their dollars will greatly contribute to the success of their families going forward.