Fakoyejo OlalekanGhana’s currency, cedi, has been rated the worst performing currency in the world, as the legal tender continues to suffer depreciation in value against the United States dollar in 2022.
In the last 10 months, Ghanaian cedi lost 45.1 per cent of its value against the American greenback, as dollar strengthens in value, reflecting troubling times for the West African nation.
Join our WhatsApp ChannelThe Ghanaian cedi surpassed Sri Lankan rupee and currencies of 146 other nations to become the worst currency against dollar, according to Bloomberg report.
Ghana occupied the position following 3.3 per cent depreciation in cedi’s valuation, which fell to 11.2750 cedi per dollar on Monday.
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Due to the devaluation of cedi and the downturn of the country’s economy, the Ghanaian government opened bailout talks with the International Monetary Fund (IMF) in July.
The bailout is expected to be at the range of $3 billion for over three years. This is to assist in restoring the country’s macro-economic stability.
Ghana’s economic downturn has been driven by soaring inflation resulting in price hikes, coupled with electronic payments tax, among other levies. Amid the harsh economy, Ghanaians have protested government decisions and rising cost of living; although spiraling inflation is currently being experienced globally.
In Nigeria, the country recorded its highest inflation rate in 20 years last month, reporting 20.77%, rising above the 20.52% that was posted in August by the National Bureau of Statistics (NBS).
This has also increased cost of living in Nigeria, with prices of yam, oil and other farm produce driving up costs. The situation is worsened by the recent flooding in over 20 states that has forced upstream gas suppliers and the Nigerian Liquefied Natural Gas (NLNG) to pause operations until further notice.
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