- The Ghana cedi has earned an embarrassing description as the worst performing currency in the world, worse even than the Sri Lankan Rupee
- Bloomberg says it tracked the performance of some 150 currencies since January 2022 to arrive at the score for the Ghana cedi
- The Ghana cedi has been depreciating against the dollar for months now, with $1 equivalent to almost ten times the cedi
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The cedis’ woes seem so deep that a recent performance ranking scored it as the worst performing currency in the world, even worse than the Rupee of politically destabilised Sri Lanka.
Bloomberg says it tracked the performance of 150 currencies worldwide since January 2022 to arrive at its bleak verdict on the Ghanaian cedi.
The cedi has lost nearly 50% of its value to the United States dollar since the start of the year.
Cedi Depreciation: John Dumelo, A Plus, Nana Aba Anamoah, Other Ghanaian Celebrities Make Fun of Government
According to data from Bank of Ghana, the local currency has lost an accumulated GH¢3.30 to the dollar in less than eight months.
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The data show that the local currency started the year at $1.00 to GH¢6.02. Then, it wobbled for about five months the exchange rate hit $1.00 for GH¢7.43.
However, within the last three weeks, the cedi’s depreciation has been steep and drastic, trading at forex bureaux at almost GH¢10 to the dollar.
The cedis’ woes come from high imports and huge loans in foreign currencies.
The Russian-Ukraine and the Covid-19 pandemic have also been blamed for the debilitating economic conditions in Ghana currently.
Steve Hanke: U.S. Economist Describes Ghana Cedi As Bank of Ghana Junk Currency
Not long ago, US-based Economist Professor Steve Hanke gave a grim assessment of Ghana's local currency, describing the cedi as a central bank "junk currency" as depreciation persists.
The popular economist said his calculations show that the the cedi has depreciated by approximately 34% against the US dollar since January 2020.
"In #Ghana, the economy is in the tank. By my calculations, the #cedi has depreciated by ~34% against the USD since Jan. 1, 2020. The cedi is a central bank junk currency. GHA must mothball its central bank and install a currency board," he tweeted over the weekend.
Cedi Depreciation: Traders To Hit The Streets
Meanwhile, YEN.com.gh has reported in a related story that traders in Ghana are clamouring for mammoth street protest over the cedi's depreciation.
Thousands of traders have raised concerns about the continuous fall of the Ghana cedi against the dollar and other major trading currencies. The leadership of the umbrella body of a huge number of traders, the Ghana Union of Traders Association (GUTA) has said members are agitating over the cedi's problems.
The cedi has been falling against major trading currencies, chiefly the US dollar, Pounds Sterling and Euro, since the start of 2022.
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