Ghanaian Cedi Second Worst-Performing Asset Amongst Sub-Saharan Africa’s High 15 Currencies – Economics Bitcoin Information

In simply the primary 17 days of the brand new 12 months, the Ghanaian forex reportedly depreciated by 12.7%, making it the second worst-performing amongst Sub-Saharan Africa’s high 15 currencies. Whereas one U.S. greenback purchased 13.10 models of the cedi on the parallel market, in accordance with the most recent Financial institution of Ghana knowledge, one buck buys round 10.36 models of the native forex.

The Cedi’s Quick-Lived Resurgence

After ending 2022 as one of many world’s worst-performing currencies, the Ghanaian forex is already one among two in Sub-Saharan Africa’s high 15 currencies that depreciated by double-digit figures inside the first 17 days of the brand new 12 months, a report has stated. The Egyptian pound, which depreciated by 16.5% throughout the identical interval, is the one forex amongst Sub-Saharan Africa’s high 15 that has depreciated sooner than the cedi.

Though the Ghanaian cedi’s year-to-date 12.7% drop remains to be decrease than that of the entire of 2022 (38.86%), the most recent depreciation means that the forex’s resurgence that began in late 2022 has dissipated.

As reported by Bitcoin.com Information in mid-December 2022, the cedi rallied from round GHS14:$1 to underneath 9:1 in simply 4 days. The forex’s revival had been fueled by stories suggesting the Ghanaian authorities had secured a $3 billion mortgage from the Worldwide Financial Fund (IMF). Ghana wants the mortgage to assist it stabilize its financial system.

Along with the IMF mortgage bundle, Ghana, one among Africa’s high gold producers, hopes to ease the strain on the cedi via the not too long ago launched gold-for-oil scheme.

Financial institution of Ghana Alternate Charges pic.twitter.com/AGI7GfW5M3

— Financial institution of Ghana (@thebankofghana) January 20, 2023

Nevertheless, the cedi’s plunge to round GHS13.10:$1 on the foreign exchange parallel market means that neither the IMF mortgage nor the barter scheme can halt the forex’s fall. In the meantime, on the time of writing, the Financial institution of Ghana’s data confirmed that one U.S. greenback purchased GHS10.36 on the official overseas change market.

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Terence Zimwara

Terence Zimwara is a Zimbabwe award-winning journalist, writer and author. He has written extensively in regards to the financial troubles of some African international locations in addition to how digital currencies can present Africans with an escape route.