The Ghana cedi is now the worst-performing currency among Africa’s top currencies, according to Bloomberg. Bloomberg pegs the depreciation of the cedi to the dollar at 8.86% between January 1, 2022, and February 25, 2022.
This is followed by the Zambian kwacha with a depreciation of 6.02%.
In 2020, the international media and research organization rated the Ghana cedi as the best performing currency in the world against the United States Dollar.
Ghana and the Zambian economies have been battling with fiscal slippages, whilst their rising debts have created fears among investors regarding their economic outlook.
Whereas Zambia agreed to an International Monetary Fund bailout of $1.4 billion in December 2021 for a crucial three-year programme to restructure its debt, Ghana is adamant about returning to the Bretton Wood institution for a similar programme to build investor credibility.
Crude oil has been selling above $100 per barrel, but the foreign inflows from the commodity have done little to help stabilise the cedi.
However, the five-year $4.5 billion Country Partnership Framework from the World Bank is expected to inject some dollar inflows into the economy and help shore up the value of the cedi.
The Gambian dalasi, New Sudanese pound and Ethiopian birr are among African Currencies with the “Worst Spot Returns” by Bloomberg.
Angola Kwanza, Namibian dollar and South Africa are however among African currencies with the “Best Spot Returns”.