Cedi Still The Worst-Performing Currency In Africa Despite Bank Of Ghana Intervention

Cedi Still The Worst-Performing Currency In Africa Despite Bank Of Ghana Intervention

  • There is no let up in the cedi's woes against the dollar despite the intervention of the Bank of Ghana
  • According to Bloomberg, the cedi recorded an 18.21% rate of fall against the dollar in the first quarter of this year
  • The local currency is still the worst performing currency against the US dollar in all of Africa

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The cedi continues its slump to the US dollar and is still ranked the worst-performing currency in Africa despite the Bank of Ghana's decision to pump more dollars into the system.

According to a report quoting a Bloomberg analysis, the cedi has recorded an 18.21% depreciation rate to the dollar in the first quarter of this year.

Dollar and cedi
The cedi is still struggling against the dollar. Source: Instagram/@fillaboyzdotcom
Source: Instagram

The report indicates that the situation would have been worse for the central bank's intervention.

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The central bank increased its key prime interest rate by 250bps to 17% on March 21st, 2022, the most considerable increase in borrowing costs in more than 20 years.

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The central bank cited uncertainty surrounding price development and its impact on economic activity.

The Bank of Ghana last month raised the rate at which it lends to commercial banks by 2.5%, from 14.5% to 17%.

Governor of the Bank of Ghana, Dr Ernest Addison, explained that the decision to increase the lending rate was informed by current pressures on the economy, the uncertainty about the economic outlook and the war between Russia and Ukraine.

The central bank is hopeful that the move will hold increasing inflation and rapid fall of the cedi against the dollar and other major trading currencies.

Currencies with 'Worst Spot Returns' at the end of Q1 2022: (Ranking currency year-to-date):

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16th New Sudanese pound -2.08%

17th Ethiopian Birr -3.89%

18th Liberian dollar -4.94%

19th Sierra Leone leone -5.10%

20th Mauritian rupee -7.05%

21st Zambian kwacha -8.02%

22nd Egypt pound -14.27%

23rd Ghana cedi -18.21%

Adamus Resources: Mining Firm Refutes Claim By Ellembelle MP After Death Of Local Resident

Adamus Resources has denied involvement in the death of a young man at Nkroful following a claim by Ellembelle MP, Emmanuel Armarh-Kofi Buah, that the mining firm had a hand in the incident.

The MP had accused the mining firm of using state security personnel to clamp down on residents allegedly encroaching on its concessions at the Nzema project.

However, in a statement, Adamus Resources said the "unfortunate incident" happened when state security personnel clashed with rampaging residents at the Nkroful district magistrates' court.

Source: YEN.com.gh

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