In a recent report by Bloomberg, Ghana’s local currency, the Cedi, has been classified among African currencies with the ‘worst spot returns.’ The World Currency Ranker placed the Cedi’s performance at 17th, showing a depreciation of 11.21 percent.
The Cedis Against the US Dollar
Although the Cedi experienced a loss of about 11.21% against the US dollar in the first quarter of 2023, it is still categorized as one of the African currencies with ‘worst spot returns.’ However, Cedi’s performance in the first half of 2023 showed improvement compared to the same period last year.
Fitch Solutions has also made a positive projection, stating that the Ghana Cedi is expected to end 2023 at a rate of ¢12.40 to one US dollar. This marks a significant improvement compared to the 38% depreciation recorded in 2021. The stabilization of the Cedi is anticipated due to Ghana’s program with the International Monetary Fund (IMF).
Cedi Current Performance
Currently, the Cedi is trading at around GHS 11 to a dollar, and analysts predict that its value will further strengthen following Ghana’s receipt of the first tranche of the $3 billion US dollar IMF bailout. On the list of worst-performing African currencies this year, the Nigerian Naira takes the top spot with a 39% depreciation against the US dollar. It is followed by the Angola Kwanza and the Egyptian pound, which have experienced year-to-date losses of 38.8% and 20% respectively.
Financial analysts in Ghana continue to project further stability for the Cedi, attributing it to the country’s receipt of the initial portion of the $3 billion IMF bailout.