Ghanaian Cedi Second Worst-Performing Asset Among Sub-Saharan Africa"s Top 15 Currencies
In just the first 17 days of the new year, the Ghanaian currency reportedly depreciated by 12.7%, making it the second worst-performing among Sub-Saharan Africa’s top 15 currencies. While one U.S. dollar bought 13.10 units of the cedi on the parallel market, according to the latest Bank of Ghana data, one greenback buys around 10.36 units of the local currency. The Cedi’s Short-Lived Resurgence
After ending 2022 as one of the world’s worst-performing currencies, the Ghanaian currency is already one of two in Sub-Saharan Africa’s top 15 currencies that depreciated by double-digit figures within the first 17 days of the new year, a report has said. The Egyptian pound, which depreciated by 16.5% during the same period, is the only currency among Sub-Saharan Africa’s top 15 that has depreciated faster than the cedi.
Although the Ghanaian cedi’s year-to-date 12.7% drop is still lower than that of the whole of 2022 (38.86%), the latest depreciation suggests that the currency’s resurgence that started in late 2022 has dissipated.
As reported by Bitcoin.com News in mid-December 2022, the cedi rallied from around GHS14:$1 to under 9:1 in just four days. The currency’s revival had been fueled by reports suggesting the Ghanaian government had secured a $3 billion loan from the International Monetary Fund (IMF). Ghana needs the loan to help it stabilize its economy.
In addition to the IMF loan package, Ghana, one of Africa’s top gold producers, hopes to ease the pressure on the cedi through the recently 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 around GHS13.10:$1 on the forex parallel market suggests that neither the IMF loan nor the barter scheme can halt the currency’s fall. Meanwhile, at the time of writing, the Bank of Ghana’s data showed that one U.S. dollar bought GHS10.36 on the official foreign exchange market.
Register your email here to get a weekly update on African news sent to your inbox:
Tags in this story Bank of Ghana, cedi depreciation, egyptian pound, foreign exchange market, International Monetary Fund (IMF)
What are your thoughts on this story? Let us know what you think in the comments section below. Terence Zimwara
Terence Zimwara is a Zimbabwe award-winning journalist, author and writer. He has written extensively about the economic troubles of some African countries as well as how digital currencies can provide Africans with an escape route. Casting Stones From a Glass House: Yellen"s Comments on Zambia"s Debt Restructuring Draw Criticism From Chinese Embassy ECONOMICS | 1 hour ago Brazil and Argentina to Start Working on Creation of Latam Common Currency ECONOMICS | 13 hours ago
Image Credits: Shutterstock, Pixabay, Wiki Commons Previous articleBunzz Raises $4.5M Seed Round to Expand its Smart Contract Hub for DApp Development Next articleFinder’s Experts Predict Bitcoin to Peak at $29K in 2023, But Forecast a Low of $13K Disclaimer: This article is for informational purposes only. It is not a direct offer or solicitation of an offer to buy or sell, or a recommendation or endorsement of any products, services, or companies. Bitcoin.com does not provide investment, tax, legal, or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article. Read disclaimerShow comments More Popular NewsIn Case You Missed ItSEC Risks Violating Admin Procedure Act by Rejecting Spot Bitcoin ETFs, Says Grayscale
Grayscale Investments" CEO explains that the U.S. Securities and Exchange Commission (SEC) could potentially violate the Administrative Procedure Act by not approving a spot bitcoin exchange-traded fund (ETF). SEC Approving Spot Bitcoin ETF Is "a Matter of When and Not ... read more.Argentinian Securities Regulator Launches Innovation Hub to Discuss Regulated Crypto Investments FBI Issues Alert Concerning Malicious State-Sponsored North Korean Hackers Targeting Crypto Firms Interest in Real Estate Investments in Spain Grew 400%, With Some Using Crypto and Stocks as Payment Method Ethereum Foundation"s Financial Report Discloses It Holds $1.6 Billion in Assets, 80.5% Held in Ether