Ghana cedi struggles against US dollar
Ghana cedi second-worst performing currency in Africa
Ghana cedi currently trading at GH¢6.60 to one US dollar
Ghana’s local currency has depreciated by 4.70 percent to the US dollar with only 45 days into the start of 2022, a Joy Business report has revealed.
Currently, on the forex market, the Ghana cedi is trading at GH¢6.60 to one US dollar.
According to the portal, the Ghana cedi’s struggles against the major trading currency have also rendered it as the second worst-performing currency in Africa, among 15 other top-performing currencies.
Market analysts have since attributed the cedi’s current woes to upside risks such as the high-interest payments, lack of adequate revenue mobilization, increasing government expenditure, and high debt concerns.
These factors, the analysts believe have resulted in investors existing and trading off Ghana’s bonds on the international bond markets while access to international capital markets still remains uncertain.
In addition to this, international credit rating agencies, Moody’s Investor Services, and Fitch Ratings have both downgraded Ghana’s creditworthiness.
Meanwhile, on the African continent, the Zambian Kwacha which ordinarily performed well among currencies in 2021 was ranked the worst so far 2022. The Kwacha’s value declined by 11.29 percent to the US dollar.