According to a recent rating of currency performance by Bloomberg, the Ghana Cedi is currently the second-worst performing currency in the world, trailing only the Sri Lankan Rupee.
The Cedi, since the beginning of 2022, has performed the worst among 150 currencies worldwide according to the international news agency’s analysis.
Ghana’s Currency Woes
The Ghana Cedi has consistently declined against major trade currencies, particularly the US dollar, since the beginning of this year.
Due to high debt levels and a general lack of investor trust, Ghana could not access the international capital market for borrowing, which caused the currency to plummet.
By July of the current year, the Cedi’s value had decreased by more than 20%. On the exchange rate market, the local currency is now trading for more than Ghc10.00 to one US dollar.
What Has Been Done So Far
The Bank of Ghana has assured that it is taking action to remedy the Cedi’s decline versus major trade currencies in the interim.
To assist satisfy rising FX requests for external payments, the central bank is expanding the short-term supply of foreign currency (FX) to banks as part of its efforts to slow the decline of the Cedi.