Ghana Cedi ranked second worst-performing currency in the world – Bloomberg
According to Bloomberg, the Ghana cedi lost 40.05% of its value against the US dollar in the first nine months of 2022, putting it as the world’s 147th worst performing currency.
This is the greatest loss of the local currency against the US dollar in over three decades.
The cedi’s performance also ranks it last among the 30 top-performing currencies on the African continent.
In the previous three months, the local currency has lost over 21% of its value in relation to the world’s most significant currency.
The situation was the worst in August 2022.
The cedi’s troubles this year have been exacerbated by the economy’s bad fiscal situation, resulting in a reduction of the country’s credit rating by all three of the world’s leading rating agencies.
As a result, several investors have liquidated their investments in Government of Ghana bonds, aggravating the situation.
The Cocoa Syndication Loan will temporarily halt cedi devaluation.
However, the planned $1.3 billion Cocoa Syndication Loan, with the first tranche of inflows due this month, will dramatically decrease the rate of depreciation of the cedi in the immediate term.
The Ghana Cocoa Board’s management is set to execute a historic financing agreement with several foreign banks to allow the purchase of cocoa beans from farmers for the 2022/2023 harvest season.
Again, the planned economic program sought by the government from the International Monetary Fund may, in the medium term, arrest the precipitous decline of the local currency.
Meanwhile, the Sri Lanka Rupee is the world’s poorest performing currency, ranking 148th.