Just two months into 2022, the Ghana cedi has become the worst-performing currency among Africa’s major currencies.
This is due to a 7.6% depreciation against the dollar between January 1 and February 25, 2022.
The local currency has surpassed the Zambian kwacha, which two weeks ago was the continent’s worst-performing currency.
Both Ghana and Zambia face difficulties in dealing with growing indebtedness, as well as revenue mobilization and expenditure management.
The country’s exchange rate, interest rate, and inflation are all suffering as a result of this conundrum. Furthermore, the recent downgrading of the country’s borrowing capacity is a big source of concern, as investors remain uncertain about the Ghanaian economy’s prospects.
This supports the view of certain economists and experts that all concerns about the Electronic Transaction Levy must be addressed and passed by Parliament as soon as possible.
If not, the devaluing cedi will have an impact on most company budgets as well as consumers’ disposable money.
However, the World Bank Group has authorized a five-year Country Partnership Framework for Ghana, which will run from this year through 2026.
This will result in a $4.5 billion investment into the economy in the next 5years.
Ghana’s COVID-19 and medium-term development agenda will be supported by the CPF. Enhancing Conditions for Private Sector Development and Quality Job Creation; Improving Inclusive Service Delivery, and Promoting Resilient and Sustainable Development are three mutually reinforcing key areas.
Meanwhile, with a 4.12 percent gain against the dollar, the Namibian dollar has surpassed the South African rand as Africa’s best-performing currency so far this year.
With a 3.68 percent gain against the dollar, the South African rand is in second place.
AFRICA’S TOP CURRENCIES
CURRENCY YEAR-TO-DATE PERFORMANCE RANKING
Namibian dollar- 4.49% 1st
South African rand3.68%2nd
Botswana pula1.17% 3rd
Tunisia dinar 0.75% 4th
Uganda shilling0.46% 5th
Egypt Pound0.02% 6th
Malawi kwacha0.00% 7th
Tanzania shillings -0.02%. 8th
Kenya shilling-0.06%- 9th
Nigerian naira-0.70% 10th
Mauritius rupee-0.75% 11th
Côte d’Ivoire CFA-0.90 12th
Morocco dirham-2.56% 13th
Zambia kwacha-5.98% 14th
Ghana cedi-7.60 15th