Cedi depreciates 7.6% to the dollar; tops Africa’s worst performing currencies

Cedi depreciates 7.6% to the dollar; tops Africa’s worst performing currencies

The Ghana cedi is currently the worst performing African currency given its 15th position on the Bloomberg league of 15 top African currencies.

The cedi dropped from its previous 14th position to its current position after recording depreciation rate of about 7.6% to the dollar just two months into 2022 – from January 1, 2022 to February 25, 2022.

Bloomberg, in its tracking of the league of African currencies, has classified the cedi among currencies with the worst spot returns.

The local currency was overtaken the Zambian kwacha, which was the worst-performing currency on the continent two weeks ago.

Both Ghana and Zambia have challenges in addressing their escalating debts as well as struggling with revenue mobilisation and expenditure management.

Read: Ghana on a narrow path to debt sustainability – World Bank

This is thus having a negative impact on the country’s exchange rate, interest rate and inflation. Additionally, the recent downgrade of the country’s ability to borrow is also a major worry as investors are still unsure about the outlook of the Ghanaian economy.

According to Bloomberg’s League of African Currencies, the Namibian dollar is so far the best performing African currency with a YTD appreciation rate of 4.49% against the US dollar.

The South African Rand with a 3.68% appreciation rate to the dollar is ranked the second best performing African currency.

AFRICA’S TOP CURRENCIES