The Ghanaian dollar reportedly lost 12.7% of its value in the first 17 days of the new year, placing it second among the top 15 currencies in Sub-Saharan Africa in terms of performance.
According to the most recent data from the Bank of Ghana, one dollar only buys about 10.36 cedis compared to the 13.10 cedi it would have on the black market.
The Ghanaian currency is already one of two in Sub-Saharan Africa’s top 15 currencies that depreciated by double digits within the first 17 days of the new year, according to a report. The Ghanaian currency ended 2022 as one of the world’s worst-performing currencies.
The most recent depreciation reveals that the Ghanaian cedi’s spike that began in late 2022 has faded, even though its year-to-date decline of 12.7% is still less than that of the entire year 2022 (388.6%).
Ghana, one of Africa’s leading gold producers, seeks to relieve the pressure on the cedi through the recently introduced gold-for-oil program in addition to the IMF loan package.
Bank of Ghana Exchange Rates pic.twitter.com/AGI7GfW5M3
— Bank of Ghana (@thebankofghana) January 20, 2023
The cedi’s decline to about GHS13.10:$1 on the forex black market, however, indicates that neither the IMF loan nor the barter system will be able to stop the currency’s decline.
At the time this article was being written, data from the Bank of Ghana showed that on the official foreign exchange market, one US dollar was equivalent to GHS10.36.