ADVERTISEMENT

Ghana's cedi is Africa's third-worst performing currency since January 2024

Since January 1, 2024, Ghana's cedi has become Africa's third-worst performing currency, depreciating by 8.63% against the United States dollar.

Cedi and dollar

Reports by Bloomberg stated that ongoing challenges for the cedi as negotiations over debt restructuring with Eurobond holders extend.

Over the past three weeks, the cedi has encountered significant pressure, experiencing substantial depreciation against the US dollar and other major foreign currencies.

Just last week, the cedi depreciated by more than 1.30%.

Bloomberg suggested that the local currency, ranking as Africa's third-worst-performing currency this year, may continue to face difficulties.

ADVERTISEMENT

Despite the International Monetary Fund's $3 billion bailout following the country's 2022 debt default, Bloomberg warns that the cedi's weakening trend could persist.

Even with interventions by the Bank of Ghana in the spot market, the cedi's performance remains uncertain, prompting concerns about the outlook for inflation.

Nevertheless, economist Professor Ebo Turkson has characterized the recent depreciation of the Ghana cedi as non-alarming, expressing his belief that the trend will soon be reversed.

He conveyed confidence in the cedi experiencing marginal appreciation in the forthcoming days.

ADVERTISEMENT

While addressing a stakeholder engagement workshop on Special Drawing Rights by the International Monetary Fund (IMF), Prof. Turkson cautioned against speculative activity regarding the cedi's depreciation or the dollar's growth, noting that such activity could further weaken the currency and adversely affect importers who depend on the dollar for trade.

JOIN OUR PULSE COMMUNITY!

ADVERTISEMENT

Eyewitness? Submit your stories now via social or:

Email: eyewitness@pulse.com.gh

Enhance Your Pulse News Experience!

Get rewards worth up to $20 when selected to participate in our exclusive focus group. Your input will help us to make informed decisions that align with your needs and preferences.

I've got feedback!
ADVERTISEMENT