Ghanaian Cedi Second Worst-Performing Asset Among Sub-Saharan Africa’s Top 15 Currencies

In conscionable the archetypal 17 days of the caller year, the Ghanaian currency reportedly depreciated by 12.7%, making it the 2nd worst-performing among Sub-Saharan Africa’s apical 15 currencies. While 1 U.S. dollar bought 13.10 units of the cedi connected the parallel market, according to the latest Bank of Ghana data, 1 greenback buys astir 10.36 units of the section currency.

The Cedi’s Short-Lived Resurgence

After ending 2022 arsenic 1 of the world’s worst-performing currencies, the Ghanaian currency is already 1 of 2 successful Sub-Saharan Africa’s apical 15 currencies that depreciated by double-digit figures wrong the archetypal 17 days of the caller year, a report has said. The Egyptian pound, which depreciated by 16.5% during the aforesaid period, is the lone currency among Sub-Saharan Africa’s apical 15 that has depreciated faster than the cedi.

Although the Ghanaian cedi’s year-to-date 12.7% driblet is inactive little than that of the full of 2022 (38.86%), the latest depreciation suggests that the currency’s resurgence that started successful precocious 2022 has dissipated.

As reported by Bitcoin.com News successful mid-December 2022, the cedi rallied from astir GHS14:$1 to nether 9:1 successful conscionable 4 days. The currency’s revival had been fueled by reports suggesting the Ghanaian authorities had secured a $3 cardinal indebtedness from the International Monetary Fund (IMF). Ghana needs the indebtedness to assistance it stabilize its economy.

In summation to the IMF indebtedness package, Ghana, 1 of Africa’s apical golden producers, hopes to easiness the unit connected the cedi done the precocious launched gold-for-oil scheme.

Bank of Ghana Exchange Rates pic.twitter.com/AGI7GfW5M3

— Bank of Ghana (@thebankofghana) January 20, 2023

However, the cedi’s plunge to astir GHS13.10:$1 connected the forex parallel marketplace suggests that neither the IMF indebtedness nor the barter strategy tin halt the currency’s fall. Meanwhile, astatine the clip of writing, the Bank of Ghana’s data showed that 1 U.S. dollar bought GHS10.36 connected the authoritative overseas speech market.

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