Ghana Cedi is worst performing currency against US dollar.

The Ghana Cedi. 

The Ghana Cedi has recently, been witnessing a significant decline in comparison to other trade currencies, particularly the United States dollar.

The problems that have been plaguing the country's currency have been compounded by the publication of a study by the World Bank that labels the Ghana Cedi as the African currency that has performed the poorest against the dollar.

According to the Africa Pulse Report, as of September 19, the value of the cedi has decreased by 60% in comparison to that of the dollar.

Also Read: GH Cedi worst performing currency after Rupee according to Bloomberg.

The report that analysed the economic opportunities and potential dangers facing African economies in 2022, has categorised Ghana as a debt-distressed nation due to the fact that the country's debt-to-GDP ratio is anticipated to exceed 100% by the end of the year.

Explaining why their depreciation rate is higher than the widely reported 40% figure. Accra-based Joy News report that the bank confirmed to them in an email correspondence that, “It used a different methodology to track the FX rate of depreciation from the beginning of this year to September 19 2022.”

According to the article from Joy News, this is how the World Bank arrived at a rate of depreciation of 60%, as opposed to 40%, if you are working with a rate of 6.17 on December 31 and 10.9 in September 2022.

Countries and respective rate of depreciation against the US dollar:

Ghana - (60%)

South Sudan - (50.8%),

Sudan - (28.6%),

Malawi - (25.4%),

CFA Franc - (13.3%)  

Source: ghananews.hrforum.uk