Cedi now worst African currency; depreciates 7.6% to dollar

The Ghana cedi is now the worst-performing currency on the African continent just two months into 2022.

This is because it has depreciated by about 7.6% to the dollar from January 1, 2022 to February, 25, 2022.

The local currency has therefore overtaken the Zambian kwacha, which was the worst-performing currency on the continent two weeks ago.

Both Ghana and Zambia have challenges in addressing their escalating debts as well as struggling with revenue mobilisation and expenditure management.

This conundrum is impacting negatively on the country’s exchange rate, interest rate and inflation. Additionally, the recent downgrade of the country’s ability to borrow is also a major worry as investors are still unsure about the outlook of the Ghanaian economy.

This affirms some economists and analysts’ assertion that all concerns regarding the Electronic Transaction Levy must be addressed and passed immediately by Parliament.

If not the depreciating cedi will affect the budget of most corporate institutions as well as reduce the disposable income of consumers.

But there could be some hope going forward as the World Bank Group has approved a five-year Country Partnership Framework for Ghana from this year till 2026.

This will see the injection of $4.5 billion into the economy, in the next five years.

Source: www.myjoyonline.com