In simply the very first 17 days of the brand-new year, the Ghanaian currency apparently diminished by 12.7%, making it the second worst-performing among Sub-Saharan Africa’s top 15 currencies. While one U.S. dollar purchased 13.10 systems of the cedi on the parallel market, according to the most recent Bank of Ghana information, one greenback purchases around 10.36 systems of the regional currency.
The Cedi’s Short-Lived Resurgence
After ending 2022 as one of the world’s worst-performing currencies, the Ghanaian currency is currently one of 2 in Sub-Saharan Africa’s top 15 currencies that diminished by double-digit figures within the very first 17 days of the brand-new year, a report has actually stated. The Egyptian pound, which diminished by 16.5% throughout the exact same duration, is the only currency among Sub-Saharan Africa’s top 15 that has actually diminished faster than the cedi.
Although the Ghanaian cedi’s year-to-date 12.7% drop is still lower than that of the entire of 2022 (38.86%), the most recent devaluation recommends that the currency’s renewal that began in late 2022 has actually dissipated.
As reported by Bitscoins.net News in mid-December 2022, the cedi rallied from around GHS14:$1 to under 9:1 in simply 4 days. The currency’s revival had actually been sustained by reports recommending the Ghanaian federal government had actually protected a $3 billion loan from the International Monetary Fund (IMF). Ghana requires the loan to assist it support its economy.
In addition to the IMF loan plan, Ghana, among Africa’s top gold manufacturers, wishes to relieve the pressure on the cedi through the just recently introduced gold-for-oil plan.
Bank of Ghana Exchange Rates (*15*)
— Bank of Ghana (@thebankofghana) January 20, 2023
However, the cedi’s plunge to around GHS13.10:$1 on the forex parallel market recommends that neither the IMF loan nor the barter plan can stop the currency’s fall. Meanwhile, at the time of composing, the Bank of Ghana’s data revealed that a person U.S. dollar purchased GHS10.36 on the main forex market.
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