After months of struggle, Ghana’s Cedi becomes the best performing currency in the world
Last week, the Ghanaian Cedi was recorded as the best-performing currency in the world, according to a report by Bloomberg. This sudden increase in value is believed to be the result of Ghana’s efforts to reorganize its local debts. The rising value of the Cedi has also been met with optimism that the country will receive the $3 billion bailout it has been requesting from the International Monetary Fund for months.
The report from Bloomberg stated that the Cedi has rallied 10% in the past five days, the biggest advance among the approximately 150 currencies tracked by the news agency. This marks a significant turnaround for an exchange rate that had lost half of its value this year and was previously considered the weakest currency in the world.
Charles Robertson, the global chief economist at Renaissance Capital Ltd. in London, was quoted in the report as saying, “The currency was the cheapest in Africa, more than 30% undervalued versus its 25-year history last week, so some rebound after the huge fall recently isn’t that surprising. We also have the IMF in town, which should pave the way for dollar support.”
This news is in stark contrast to what was reported a few months ago when the Ghanaian Cedi was named the worst-performing currency in the world. This news sparked widespread outrage and protests on the streets of Accra, with some protesters even making their way to the Parliament building to call for the dismissal of the country’s finance minister, Ken Offori-Atta.
However, despite the protests, Offori-Atta was able to retain his position after a vote within the government chambers. It is possible that the recent appreciation of the Cedi may be the result of initiatives implemented by his office.
Ghana is widely considered to be one of the most prominent and successful regions in Africa, with a strong history of good governance and development. Despite the country’s recent economic crisis, it is believed that it has the potential to recover and continue its positive trajectory.
