Ghana Cedi Plunges Against Dollar To Become Africa's Worst-Performing Currency

Ghana Cedi Plunges Against Dollar To Become Africa's Worst-Performing Currency

  • The Ghana cedi is currently performing at its lowest in a recent analysis by Databank
  • Checks have shown that the cedi sits at the bottom of a 15-list currency ranking table showing huge depreciation
  • Some economists have said that spending in the country would take a major hit over the recent analysis

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The latest report by Ghana-based finance analyst, Databank, shows Ghana sits at the bottom of a 15-currency ranking after depreciating by 7.6% to the U.S. dollar.

This makes the local currency the worst-performing on the continent.

At the start of 2022, the Ghana cedi sat at number 14, beating only the Zambian kwacha.

Ghana cedi and dollar
Ghana cedi and dollar. Source: databank
Source: UGC

However, a myriad of factors including rising debts, high-interest rate and unattractiveness of Ghana's bonds to foreign investors seem to be taking a toll on the cedi's value.

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Economists predict a plunge in the value of the currency against a major currency (like the dollar) will discourage spending in the local economy as the purchasing power of consumers become weak.

Secondly, imports will become relatively expensive and thereby increase imported inflation.

Analysts fear the magnitude of depreciation against the dollar, only two months into the year, spells further doom for Ghana’s struggling economy.

Ghanaian Student In Ukraine Vows Never To Return To Ghana Despite Russian Invasion

A young Ghanaian man believed to be a student in the Eastern country of Ukraine has said he has no intentions of returning to Ghana despite the Russian invasion.

In a new video sighted by YEN.com.gh on Instagram, the young man who was seen walking the streets of Ukraine and happily speaking about staying put.

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He said he had heard that the Ghanaian government was making moves to evacuate Ghanaians in Ukraine back to Ghana following the crisis with Russia.

The young man however said he was not going to move an inch from Ukraine and advised the country against taking such a decision.

He went on to say that he would rather stay in Ukraine and lose his life through bombing than board a plane to come back to Ghana.

Source: YEN.com.gh

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