Based on the latest reports by Bloomberg, the Ghanaian cedi isn’t doing so well in terms of value. It is currently the currency with the worst exchange rate to US dollars, hence its new title—worst performing currency in the whole world.
The Ghana cedi has suffered a tremendous fall ever since the start of the year, and so has the naira.
The fall in the currency is due to demand forex as it overtook supplies during a period when high debts and low investor confidence have made it impossible for Ghana to access the international capital market for borrowing, Bloomberg said.
Source.
As a Nigerian, the continuous depreciation of my currency’s value (the Naira) has always troubled me. And all I’ve ever done is rant and rant about the situation, while also blaming the government for its failures.
However, learning that the Ghana cedi has lost 45.1% of its value against the US dollar this year made me shake my head in disbelief. A whopping 45.1%? @depressedfuckup Are you Ghanaian? Have you seen this?
According to Bloomberg, the value of the currency was depleted by about 3% to 11.2750 per 1 dollar. However, at the time of writing, 1 US dollar is equivalent to 12.57 Ghanaian cedis.
So sorry to my Ghanaian friends, but a part of me is excited that my currency isn’t the worst at the moment! Just kidding!
Before now, the Sri Lankan Rupee was the worst and most poorly performing currency against the US Dollar, only to have the Ghanaian Cedi take its place. Who could have thought? Now, Cedi is first on the list of worst performers, while the rupee is second.
Although there are several reasons why the Ghanaian cedi may be losing drastically in this battle of currencies, one of them is inflation. The economy has not exactly been at its best, to the point that citizens have been forced to conduct protests across the nation against taxes, price hikes, etc.
Bloomberg said Ghana is hoping to receive up to $3 billion in loans for over three years under the IMF arrangement to spur its finances and support the balance of payments.
Source
Even though the Naira(#) is falling drastically against the US dollar, I’m elated that it’s not the worst performing. In addition, South Africa has also had its fair share of losses in the field of currency performance.
What are your thoughts?
Also, tag a Ghanaian and run away, LOL!
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