According to financial reports, the Ghana cedi is now the worst-performing currency among Africa’s major currencies. Between January 1, 2022, and February 25, 2022, there is an estimate of an 8.86 percent devaluation of the cedi against the dollar.
The Zambian kwacha, which has lost 6.02 percent of its value, is next.
The Ghana cedi was voted the best performing currency in the world versus the US dollar by an international media and research body in 2020.
Ghana’s and Zambia’s economies have been struggling with budgetary problems, and their mounting debts have caused investors to be concerned about their economic prospects.
Whereas Zambia agreed to an International Monetary Fund bailout of $1.4 billion in December 2021 for a crucial three-year programme to restructure its debt, Ghana is adamant about returning to the Bretton Wood institution for a similar programme to build investor credibility.
Crude oil has been selling above $100 per barrel, but the foreign inflows from the commodity have done little to help stabilise the cedi.
However, the five-year $4.5 billion Country Partnership Framework from the World Bank is expected to inject some dollar inflow into the economy and help shore up the value of the cedi.
The Gambian dalasi, New Sudanese pound and Ethiopian birr are among African Currencies with the “Worst Spot Returns”.
Angola Kwanza, Namibian dollar and South African Rand are however among African currencies with the “Best Spot Returns”.