Cedi now among Africa’s worst performing currencies
The Cedi, has now been classified among Africa’s worst performing currencies.
This is based on the currency’s 4.98% decline in value against the greenback (dollar) as well as its current 14th position among the league of 20 African currencies.
Bloomberg, in its tracking of the league of African currencies, has classified the cedi among currencies with the worst spot returns.
According to Bloomberg, amalgamation of factors including increased corporate demand for the US dollar and the exit of the country’s bond by some foreign investors put pressure on the local currency in the last two months of the year.
Again, importation of goods during the final part of 2021 by traders to sell during the Christmas period, increased demand for the American currency.
Despite a rebound in oil prices, improved exports, amongst others, the dollar inflows were not enough to stabilise the local currency.
Analysts are however uncertain about the outlook of the local currency, going forward.
Aside the Cedi, the Nigerian naira, Botswana Pula and Ethiopian Birr, also fall in the category of worst performing currencies on the continent.
According to Bloomberg’s League of African Currencies, the Zambian Kwacha is so far the best performing African currency, with spot returns of 26.74%.
CURRENCIES WITH ‘BEST SPOT RETURNS’
| CURRENCY | YEAR-TO-DATE | RANKINGS |
| Zambian Kwacha | 26.74% | 1st |
| Angola Kwanza | 17.61% | 2nd |
| Mozambique New Metical | 16.76% | 3rd |
| Guinea Franc | 7.24% | 4th |
| Uganda Shilling | 3.09% | 5th |
| Tanzania Shilling | 0.61% | 6th |
| Egyptian Pound | 0.15% | 7th |
CURRENCIES WITH ‘WORST SPOT RETURNS’
| CURRENCY | YEAR-TO-DATE | RANKINGS |
| Djibuotian Franc | -0.11% | 8th |
| Congolese Franc | -1.25% | 9th |
| Gambian Dalasi | -1.92% | 10th |
| Kenyan Shilling | -3.51% | 11th |
| Mauritian Rupee | -4.03% | 12th |
| Rwandan Franc | -4.52% | 13th |
| Ghana Cedi | -4.98% | 14th |
| Nigerian Naira | -5.02% | 15th |
| Malawian Kwacha | -5.34% | 16th |
| Botswana Pula | -7.68% | 17th |
| South African Rand | -7.72% | 18th |
| Sierra Leone Leone | -9.98% | 19th |
| Ethiopian Birr | -22.20% | 20th |
