Saturday, February 15, 2025

Ghanaian Cedi Ranks Lowest In Global Currency Depreciation

The Ghanaian Cedi has found itself as the fourth worst-performing currency in a list featuring 150 of the world’s currencies, according to recent data from Bloomberg. This unenviable position has been attributed to the currency’s weakened performance against major counterparts like the Egyptian Pound, Nigerian Naira, and Lebanese Pound, which have also been battling depreciation woes.

Recording a marginal depreciation of 0.2% to close at 14.9335 against the US dollar by the end of trading on Monday, 10 June 2024, in Accra, the Cedi has seen a significant 20% drop in value since the beginning of the year. The decline in the value of the Cedi primarily stems from an escalated demand for US dollars, needed for the purchase of petroleum products, pharmaceuticals, and a range of imported goods crucial to the Ghanaian economy.

READ MORE: Recording Academy Plans To Embrace Music Creators Across Africa, Middle East Via GRAMMY Awards

Experts from the financial sector have weighed in on the situation, outlining the underlying factors contributing to the Cedi’s poor performance. Samantha Singh-Jami, an Africa strategist at Rand Merchant Bank, pointed out that despite measures aimed at bolstering foreign exchange reserves, the local market continues to grapple with liquidity challenges. On the other hand, Samir Gadio, head of Africa strategy at Standard Chartered Bank, highlighted that a disparity in foreign exchange flows, where demand substantially outstrips supply, has been a pressing issue for the Cedi.

Notwithstanding the current challenges facing Ghana’s currency, the country’s finance minister, Dr. Mohammed Amin Adam, provided a glimmer of hope. He reassured that efforts are underway to stabilize the Cedi against the US dollar over the medium term, aiming to curb the prevailing descent and restore confidence in the nation’s economic outlook.

Hot this week

Governance Suffers as Governors Reside in Abuja, NLC President Laments

The Nigeria Labour Congress (NLC) has criticized state governors...

MTN Hikes Data Prices as NCC Approves 50% Tariff Increase

MTN Nigeria has raised its data subscription prices following...

How Nigeria Spends ₦407 Billion on Fuel Imports in 12 Days

Nigeria's state-owned oil firm, the Nigerian National Petroleum Company...

Proposed 31 New States Could Add Strain to Nigeria’s Fragile Economy – Mike Ozekhome

The Nigerian House of Representatives' proposal to create 31...

Tinubu’s Authority Challenged as GAC Backs Obasa’s Removal in Lagos

President Bola Tinubu’s long-standing dominance over Lagos politics is...

Kenya’s Rose Exports Wither Under Pests, EU Regulations

Kenya's $1 billion flower export industry, a lifeline for...

How Nigeria Spends ₦407 Billion on Fuel Imports in 12 Days

Nigeria's state-owned oil firm, the Nigerian National Petroleum Company...

Tinubu Joins African Union Summit to Push for Reparatory Justice, Economic Development

President Bola Ahmed Tinubu arrived in Addis Ababa, Ethiopia,...

NUC Tightens Rules for Private University Licensing with 14-Step Approval Process

Nigeria's National Universities Commission (NUC) has introduced a comprehensive...

MTN Hikes Data Prices as NCC Approves 50% Tariff Increase

MTN Nigeria has raised its data subscription prices following...

Ghana Targets Payroll Corruption With Probe Into 81,000 ‘Ghost Names

Ghana’s government has launched an investigation into 81,000 suspected...

Nigeria Halts Implementation of 4% FOB Charge to Refine Customs Framework

The Nigerian government has suspended the implementation of a...

Nigeria’s Dangote Refinery Reduces Diesel Prices for the Third Time Since Launch

The Dangote Petroleum Refinery has cut the gantry price...

Related Articles

Popular Categories