An emerging report from Bloomberg has declared the Ghanaian currency, the Cedi, as the worst performing currency in the world.
Bloomberg reveals that a recent decline has compounded the woes of the constantly depreciating currency, having depreciated by GHC2 in the last week.
The report comes after Bloomberg tracked 150 countries’ currencies. The study placed Ghana Cedi even behind Sri Lanka’s currency, effectively qualifying the Cedi as the worst currency in the world.
“The Cedi fell 1.6% on Tuesday, August 16, extending this year’s slump to 35% and making it the world’s worst performer among 150 currencies tracked, after bankrupt Sri Lanka’s rupee,” Bloomberg revealed.
Despite the redenomination of the currency that left it exchanging for 1 Dollar for 6.02 Cedi at the beginning of the year, the currency has been under intense exchange pressure and has further slumped.
A few weeks ago, the currency exchanged 1 Dollar to 7.3 Cedis, and then in a few days, it fell 1 Dollar to 9.37 Cedis.
With the currency losing over 3 units of its value in a few months, Ghana’s economy continues to struggle for survival as inflation rages on. Report from Fitch and S&P has the same statement of continued fall for the Cedi.
Amid these negative economic developments, Ghana’s Central Bank is holding an emergency Monetary Policy Committee (MPC) meeting today. The BoG is expected to “review recent developments in the economy” during the meeting.
Ghana’s worsening economic crisis is part of a global economic downturn caused by unprecedented disruptions and an energy crisis raising cost of living and inflationary pressure to troubling levels in countries across the world.