In simply the primary 17 days of the brand new yr, the Ghanaian foreign money 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 items of the cedi on the parallel market, in accordance with the newest Financial institution of Ghana knowledge, one dollar buys round 10.36 items of the native foreign money.
The Cedi’s Brief-Lived Resurgence
After ending 2022 as one of many world’s worst-performing currencies, the Ghanaian foreign money is already one in every of two in Sub-Saharan Africa’s high 15 currencies that depreciated by double-digit figures throughout the first 17 days of the brand new yr, a report has mentioned. The Egyptian pound, which depreciated by 16.5% throughout the identical interval, is the one foreign money amongst Sub-Saharan Africa’s high 15 that has depreciated quicker 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 newest depreciation means that the foreign money’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 below 9:1 in simply 4 days. The foreign money’s revival had been fueled by studies 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 in every of Africa’s high gold producers, hopes to ease the stress on the cedi via the lately launched gold-for-oil scheme.
Financial institution of Ghana Trade 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 foreign money’s fall. In the meantime, on the time of writing, the Financial institution of Ghana’s knowledge confirmed that one U.S. greenback purchased GHS10.36 on the official overseas change market.
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Terence Zimwara is a Zimbabwe award-winning journalist, creator 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.
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