With only 17 days into the year, the Ghana cedi has depreciated by about 12.7% to the US dollar.
The significant fall in the value of the cedi which occurred yesterday, January 16, 2023 and today, January 17, 2022 places the local currency as the second weakest currency among 15 top currencies in Sub-Saharan Africa.
The Egyptian pound is the weakest currency among the 15 top currencies in Sub-Saharan Africa. Its economy is also battling with high debt levels, rising inflation and increasing cost of living standards.
The woes of the cedi is not getting better as anticipated as the local currency is being sold at about ¢13.10 pesewas to the dollar on the forex or retail market.
The situation is also not better against the Euro and the British pound. It is selling at about ¢13.70 to the euro and ¢15 to the pound.
The Bank of Ghana however quoted a dollar at ¢10.34 .
Indeed, the country’s Net Foreign Assets is in a negative position, a situation compounding the cedi's performance.
The Governor of the Bank of Ghana, Dr. Ernest Addison, at a Public Accounts Committee meeting indicated that the pressure on the Ghanaian economy is the reason behind the depreciation of the cedi.
He is however optimistic that the government barter of gold-for-oil policy will help reduce the foreign exchange pressures on the economy and thereby stabilize the local currency.
He is also hopeful the rapid depreciation of the cedi experienced last year will not occur this year.
The Ghana Cedi also ended 2022 as the second weakest currency on the African continent with a year-to-date loss of 38.86% to the US dollar, according to Bloomberg.
Globally, the local currency placed 145th. The Sierra Leone Leone came 146th whilst the Argentina Peso and Sierra Lankan Rupee placed 147th and 148th respectively.
They were classified as the currencies with the “Worst Spot Returns” by Bloomberg.
All these countries had challenges with their economies as debt levels had become unsustainable, whilst budget deficits had worryingly enlarged.
AFRICAN CURRENCIES PERFORMANCE
CURRENCIES | YEAR-TO-DATE | RANKING |
Morocco dirham | 3.09% | 1st |
Côte d'Ivoire CFA | 1.82% | 2nd |
Uganda shilling | 1.21% | 3rd |
Botswana Pula | 1.15% | 4th |
Namibia dollar | 1.14% | 5th |
Tunisia dinar | 1.14% | 6th |
Malawi kwacha | 0.00% | 7th |
Tanzania shilling | -0.01% | 8th |
South African rand | -0.21% | 9th |
Mauritius rupee | -021% | 10th |
Kenya shilling | -0.42% | 11th |
Nigeria naira | -0.89% | 12th |
Zambia kwacha | -1.93% | 13th |
Ghana cedi | -12.77% | 14th |
Egypt pound | -16.50% | 15th |
Latest Stories
-
May Day: Sam Ankrah promises to prioritise welfare and well-being of workers if elected president
3 mins -
Bawumia plans door-to-door campaign for 2024 polls
8 mins -
GAF condemns ‘unprovoked’ fatal shooting of soldier in Kasoa land dispute
27 mins -
OSP’s request for money laundering probe against Cecilia Dapaah baseless – AG advises EOCO
59 mins -
Obofour Raphael releases ‘Asem Yi Di Ka’ EP
1 hour -
‘Operation Clean Your Surroundings’: Popular Kenkey joint and public toilets in Takoradi shut down
1 hour -
GFA boss Kurt Okraku graces Dreams FC’s dinner to celebrate CAF Confederation Cup exploits
2 hours -
We’ve intensified efforts to combat misinformation, hate speech ahead of elections- Akufo-Addo
2 hours -
Sekondi-Takoradi: STMA/Joy News’ ‘Operation Clean Your Surroundings’ taskforce arrest 10 for open defecation
2 hours -
Joy Prime’s Prime Morning celebrates May Day with gallant Officers of Ghana Navy
2 hours -
YAWC Network Ghana chapter holds National summit in Accra
3 hours -
Memories of a Baby Univers
3 hours -
Akufo-Addo calls for peaceful elections, says politics shouldn’t divide us
3 hours -
Yinson, West African Rescue Association and Ahanta West Municipality tackle malaria
3 hours -
NHIA releases over GHS170m to settle healthcare providers
3 hours