 |
| 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
0 Comments