Ghana’s local currency – the cedi has been classified among African currencies with the ‘Worst Spot’ Returns’.
This is according to a Bloomberg report.
On the World Currency Ranker, the cedi’s performance placed 17th, depreciating by 11.21 per cent.
According to Bloomberg although the cedi lost about 11.21% to the US dollar in the first quarter of 2023, it is still classified among African currencies with ‘Worst Spot’ Returns’.
The Cedi ended the first half of 2023 with a better performance record than the same period last.
Fitch Solutions has also predicted that the Ghana cedi will end 2023 at a rate of ¢12.40 to one US dollar, which is a significant improvement from the 38% depreciation recorded in 2021.
Despite short-term exchange rate volatility, the cedi is eventually expected to stabilize given Ghana’s programme with the International Monetary Fund.
Currently, the cedi is trading at about GHS 11 to a dollar with analysts predicting that the value of the cedi will further shore up after Ghana received the first tranche of the US$ 3 billion US dollar IMF bailout.
According to Bloomberg, the Nigerian Naira is the worst African currency so far this year. It has lost about 39% value to the US dollar. It is followed by the Angola Kwanza and the Egyptian pound with year-to-date losses of 38.8% and 20% respectively.
Financial Analysts in Ghana are still projecting further stability of the cedi after Ghana received the first tranche of the US$ 3 billion International Monetary Fund (IMF) bailout.