The local currency was classified among the currencies with the 'worst spot returns'.
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Ghana Cedi ranked 14th best performing currency in Africa
Bloomberg tracking of African currencies has revealed that the Ghana Cedi placed 14th on the league of African currencies in 2021.
Ghana cedi
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According to Bloomberg, the cedi lost 4.98% in value against the US dollar in 2021, although data from other research institutions show a slightly lower decline in the value of the local currency to the American currency.
In the West Africa sub-region, the cedi placed 3rd in terms of performance.
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.
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Also, the importation of goods during the final part of 2021 by traders to sell during the Christmas period, increased demand for the American currency, and that affected the cedi.
Despite a rebound in oil prices, improved exports, amongst others, the dollar inflows were not enough to stabilise the local currency.
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