The Ghana cedi ended the first half of this year with a better performance than the same period last year.
According to Bloomberg, the cedi lost about 11.21% to the US dollar, yet was still classified among African currencies with ‘Worst Spot’ Returns’.
On the interbank market, the Bank of Ghana put the year-to-date loss of the cedi to the dollar to about 20%.
The Ghanaian currency is currently going for ¢11.68 to the dollar in the retail market. The Bank of Ghana is however quoting one dollar to ¢10.99.
The cedi had performed well against the US dollar in the last three months.
Before the announcement of an International Monetary Fund programme and after the pronouncement, the cedi has kept its resilience against the American greenback. It has gained about 9% on the retail market since the announcement of the IMF programme.
However, some market watchers argue that the local currency benefited from the suspension of payments of principal and interest on external debt in December 2022.
Last week, a report indicated that demand pressures for the American greenback eased, favouring the cedi. This may continue this week all things being equal.
Meanwhile, according to Bloomberg, the Nigerian Naira is the worst African currency so far this year.
It has lost about 39% value to the US dollar.
It is followed by the Angola Kwanza and the Egyptian pound with year-to-date losses of 38.8% and 20% respectively.
In the first quarter of 2023, the Bank of Ghana put the depreciation of the cedi to the dollar at 22.1%.
Cedi to end 2023 at ¢12.40 to a dollar – Fitch Solutions
Fitch Solutions had earlier reported that the Ghana cedi will end 2023 at ¢12.40 to one US dollar.
Its argument was on the premise that Ghana will secure an International Monetary Fund-support programme by May 2023 that will go a long way to cushion the cedi against foreign exchange pressures.
It added that “while short-term exchange rate volatility will persist, we believe that the cedi will stabilise once a formal creditors’ committee is formed and the IMF executive board approves Ghana’s programme”.
Cedi ended 2022 as 2nd weakest currency in Africa, the 4th worst globally – Bloomberg
In 2022, the cedi lost about 38.86% to the US dollar, according to Bloomberg.
This was after the Ghanaian economy has gone through turbulent times.
Globally, the local currency placed 145th. The Sierra Leone Leone came 146th whilst the Argentina Peso and Sierra Lankan Rupee placed 147th and 148th respectively.
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