- Ghana's local currency has been ranked the second-worst performing currency in the world
- This was based on an assessment by Bloomberg, which revealed that the cedi had lost 40% of its value to the dollar
- The report also added that the Ghana cedi is now the worst performing currency on the African continent
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According to Bloomberg, in just nine months of 2022, the cedi has lost so much value that it is now the 147th worst currency worldwide.
This massive decline of the cedi against the American currency makes it the worst in over three decades.
In the last three months, the woes of the cedi have deepened as the local currency lost almost 21% of its value to the world's major trading currency, with August being the worst hit month.
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The international news portal also added that the 40% loss in the value of the cedi is the worst in over 30 years.
The report further revealed that the poor showing of the cedi has made it the worst among the 30 top-performing currencies in Africa.
The only currency which the Ghanaian cedi performed better was the Sri Lankan Rupee.
Government officials have attributed the cedi's poor showing to the dollar to the excessive demand for forex when high debts and low investor confidence have made it virtually impossible for Ghana to access the international capital market for borrowing.
Ghana's Economic Outlook Downgraded To Junk Status
The situation has been exacerbated by the country's credit outlook being downgraded to junk status by several credit rating agencies as the Akufo-Addo government negotiates a bailout programme from the International Monetary Fund (IMF).
Cocoa Syndicated Loan, IMF programme Will Slowdown Cedi Depreciation
The country, in the interim, is banking its hopes on the expected $1.3 billion Cocoa Syndicated Loan, which officials say will help slow down the cedi's depreciation rate.
In the medium to long term, experts say the $3 billion IMF economic programme will halt the rapid fall of the local currency.
Ghana Cedi-To-Dollar Exchange Rate Has Broken The 10: $1 Now Selling at GH¢10.11 As At August 18
Earlier, YEN.com.gh reported that the worst fears of Ghanaians about the precarious cedi-to-dollar exchange rate were confirmed on Thursday, August 18, 2022, when a $1 was traded at forex bureaux for GH¢10.11.
YEN.com.gh’s monitoring of the local forex market suggests the cedi performance against the dollar and other international trading currencies has gotten shoddier.
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