Rate of cedi depreciation doubles to 14.21% to US Dollar – Report

The Ghana cedi has again suffered a worrying rate of depreciation in just a week into March this year, a Joy Business report has said. 

According to the portal, the rate of the cedi’s depreciation against the US Dollar doubled to 14.21 percent in the first week of March since the start of 2022. 

This comes after the local currency earlier recorded a 7.60 percent depreciation at the end of February this year.

The current fall in the value of the cedi has however ranked it as the worst-performing currency in Africa according to a 15-nation ranking. 

Market analysts have however attributed the cedi’s decline to some risk factors associated with Ghana’s economy. These include high-interest payments, revenue generation constraints among others. 

To mitigate this, some economists have urged the Bank of Ghana to inject more US Dollar currency into the economy to curtail the persistent depreciation of the cedi. 

Meanwhile, beginning January this year to February 25, 2022, the Ghana cedi depreciated by about 7.60 percent to major trading currency, the US Dollar. 

The cedi woes have been of concern to investors on the international capital markets who have signaled uncertainty about Ghana’s economic outlook and prospects. 

In addition, key rating agencies such as Moody’s Investor Services and Fitch Ratings have all downgraded Ghana’s creditworthiness.

Source: theindependentghana