The World Bank says the Ghana cedi has weakened by 20% to the dollar so far in 2023.
In its April 2023 Africa Pulse Report, the Bank said the cedi was the worst performing currency in Sub-Saharan Africa in 2022, posted a depreciation of about 40%.
This is coming despite the resurgence of the cedi in the retail market. It gained more than 3.7% last week and the strong performance continues this week.
Other currencies with significant losses last year include those of Sudan (23.6%), Malawi (20.7%), The Gambia (14.6%) and Nigeria (10.2%).
Meanwhile, Economic Analyst, Kweku Arkoh-Koomson, is projecting a stable cedi in the near term, following the successful completion of the external debt restructuring.
As we wait for an IMF deal this second quarter, we observe that government in the 2023 budget reiterated that the budget will be financed by non-concessional loans. Looking at how these non-concessional loans will also boost local reserves and improve FX liquidity, if nothing at all, the cedi will stabilise,” he said.
According to Mr. Arkoh-Koomson, the ongoing negotiations with external creditors played a role in the cedi’s stability and could impact on the performance of the local currency going forward.
The cedi is presently going for about ¢10.85 to one US dollar in the retail market.