The Ghana cedi is now the worst-performing currency among Africa's top currencies just two months into 2022.
This is because it has depreciated by about 7.6% to the dollar from January 1, to February 25, 2022.
The local currency has overtaken the Zambian kwacha, which was the worst-performing currency on the continent two weeks ago.
Both Ghana and Zambia have challenges in addressing their escalating debts as well as struggling with revenue mobilisation and expenditure management.
This conundrum is impacting negatively on the country’s exchange rate, interest rate and inflation. Additionally, the recent downgrade of the country’s ability to borrow is also a major worry as investors are still unsure about the outlook of the Ghanaian economy.
This affirms some economists and analysts' assertion that all concerns regarding the Electronic Transaction Levy must be addressed and passed immediately by Parliament.
If not the depreciating cedi will affect the budget of most corporate institutions as well as reduce the disposable income of consumers.
But there could be some hope going forward as the World Bank Group has approved a five-year Country Partnership Framework for Ghana from this year till 2026.
This will see the injection of $4.5 billion into the economy, in the next five years.
The CPF will support Ghana in its COVID-19 and medium-term development agenda. It is designed around three mutually reinforcing focus areas, namely: Enhancing Conditions for Private Sector Development and Quality Job Creation; Improving Inclusive Service Delivery, and Promoting Resilient and Sustainable Development.
The cedi is presently hovering around ¢7.05 to the US dollar, compared with about ¢6.51 to a dollar in December 31, 2021
Meanwhile, the Namibian dollar overtook the South African rand as the best performing currency in Africa so far this year with an appreciation of 4.12% to the dollar.
The South African rand is 2nd also with an appreciation of 3.68% to the dollar.
AFRICA'S TOP CURRENCIES
CURRENCY | YEAR-TO-DATE PERFORMANCE | RANKING |
Namibian dollar | 4.49% | 1st |
South African rand | 3.68% | 2nd |
Botswana pula | 1.17% | 3rd |
Tunisia dinar | 0.75% | 4th |
Uganda shilling | 0.46% | 5th |
Egypt Pound | 0.02% | 6th |
Malawi kwacha | 0.00% | 7th |
Tanzania shilling | -0.02% | 8th |
Kenya shilling | -0.06% | 9th |
Nigerian naira | -0.70% | 10th |
Mauritius rupee | -0.75% | 11th |
Côte d'Ivoire CFA | -0.90 | 12th |
Morocco dirham | -2.56% | 13th |
Zambia kwacha | -5.98% | 14th |
Ghana cedi | -7.60 | 15th |
Latest Stories
-
Let’s live peacefully and shame our saboteurs – Savannah executives of NPP, NDC
3 hours -
Reconstruction of Agona-Nkwanta-Tarkwa road 80 per cent complete
3 hours -
Internet penetration: 10.7 million Ghanaians offline – LONDA Report
3 hours -
USC cancels grad ceremony as campus protests against Israel’s war in Gaza continue
3 hours -
Harvey Weinstein’s 2020 rape conviction overturned in New York
3 hours -
US Supreme Court divided on whether Trump can be prosecuted
3 hours -
There’s enough justification for Affirmative Action Bill to be passed – Minka-Premo
3 hours -
Don’t allow people to manipulate you into vaccine hesitancy – Dr Adipa-Adappoe
3 hours -
Suspend implementation of Planting for Food and Jobs 2.0 for 2024 – Stakeholders
3 hours -
Parkinson’s disease no longer confined to the elderly – Public Health Physician, Dr Momodou Cham warns
3 hours -
Persons living with Parkinson’s disease appeal for support as they face stigmatization
4 hours -
36-year-old-trader sentenced for stealing employer’s money
4 hours -
9 signs you’re falling in love with someone who thoroughly enjoys emotional manipulation
4 hours -
Catholic Diocese of Keta Akatsi hosts Parkinson’s support group meeting
4 hours -
Wa Naa appeals to Akufo-Addo to audit state lands in Wa
4 hours