By 
The Ghana cedi is still the worst performing currency among African currencies with the “Worst Spot Returns,” according to Bloomberg.
The cedi recorded -28.82% depreciation to the dollar as of August 8, 2022, to sell at nearly GH¢9 to a dollar.
This means the currency could be heading for a record in the last 25 years.
The low performance of the cedi has driven inflation to a record of 29.8% in June.
However, despite the revenue the country is enjoying due to the high price of crude oil on the international market, the cedi’s depreciation has led to the increasing prices of petroleum products.
On August 5, 2022, Standard and Poor’s (“S&P”) Global Ratings downgraded Ghana’s foreign and local currency credit ratings from ‘B-/B’ To ‘CCC+/C’ with a negative outlook.
According to S&P, the downgrade is due to intensifying financing and external pressures on the economy.
The Finance Ministry in response stated that “the Government is disappointed by S&P’s decision to downgrade Ghana despite the bold policies implemented in 2022 to address macro-fiscal challenges and debt sustainability which have been significantly exacerbated by the impact of these global external shocks on the economy.”
Comments