This is based on the currency’s 4.98% decline in value against the greenback (dollar) as well as its current 14th position among the league of 20 African currencies.
Bloomberg, in its tracking of the league of African currencies, has classified the cedi among currencies with the worst spot returns.
According to Bloomberg, amalgamation of factors including increased corporate demand for the US dollar and the exit of the country’s bond by some foreign investors put pressure on the local currency in the last two months of the year.
Again, importation of goods during the final part of 2021 by traders to sell during the Christmas period, increased demand for the American currency.
Despite a rebound in oil prices, improved exports, amongst others, the dollar inflows were not enough to stabilise the local currency.
Analysts are however uncertain about the outlook of the local currency, going forward.
Aside the Cedi, the Nigerian naira, Botswana Pula and Ethiopian Birr, also fall in the category of worst performing currencies on the continent.
According to Bloomberg’s League of African Currencies, the Zambian Kwacha is so far the best performing African currency, with spot returns of 26.74%.
CURRENCIES WITH ‘BEST SPOT RETURNS’
CURRENCY YEAR-TO-DATE RANKINGS
Zambian Kwacha 26.74% 1st
Angola Kwanza 17.61% 2nd
Mozambique New Metical 16.76% 3rd
Guinea Franc 7.24% 4th
Uganda Shilling 3.09% 5th
Tanzania Shilling 0.61% 6th
Egyptian Pound 0.15% 7th
CURRENCIES WITH ‘WORST SPOT RETURNS’
CURRENCY YEAR-TO-DATE RANKINGS
Djibuotian Franc -0.11% 8th
Congolese Franc -1.25% 9th
Gambian Dalasi -1.92% 10th
Kenyan Shilling -3.51% 11th
Mauritian Rupee -4.03% 12th
Rwandan Franc -4.52% 13th
Ghana Cedi -4.98% 14th
Nigerian Naira -5.02% 15th
Malawian Kwacha -5.34% 16th
Botswana Pula -7.68% 17th
South African Rand -7.72% 18th
Sierra Leone Leone -9.98% 19th
Ethiopian Birr -22.20% 20th
Source: NorvanReport