Ghana’s Cedi Ranked World’s Best Performing currency Against the U.S. Dollar

Must Read

Ghana’s cedi has emerged as the world’s best-performing currency against the U.S. dollar so far this year, according to a Bloomberg report.

Ghana’s cedi ranked World’s Best Performing currency Against the U.S. Dollar

The Bloomberg report says the currency extended its advance on Monday ahead of a $3 billion Eurobond sale that is expected to boost the government’s coffers.

Ghana’s cedi strengthened 3.9% in 2020, the most among more than 140 currencies tracked by Bloomberg, a turnaround from last year, when it weakened 13%.

Nana Yaa Faakye, Head of Treasury at Republic Bank Ghana Ltd, attributes the current development to the coronavirus outbreak and the recent lunar new year holiday in China, which she says have cut back travel and trade, bringing down demand for foreign currency from Ghanaian importers.

“With the impending Eurobond issuance, which is likely to increase foreign reserves, some buyers are betting that the cedi will strengthen further,” Faakye says.

The central bank’s tight monetary stance is also supporting the currency, said Steve Opata, head of financial markets at the Bank of Ghana. Market reforms including the introduction of forward-rate foreign exchange auctions since October, with a target of $715 million this year, are another factor in favor of cedi gains, he said.

Ghana’s cedi has been one of the strongest currencies in Africa. One U.S. dollar currently exchanges for 5.44 cedis. Experts have, over the years, attributed the West African country’s currency position to the country’s democratic ideals and its well-managed economy. Other financial analysts say its position is indicative of growth and macroeconomic stability.

uzoclinton92@gmail.com'
Uzonna Anele
Anele is a web developer and a Pan-Africanist who believes bad leadership is the only thing keeping Africa from taking its rightful place in the modern world.

Leave a Reply

Subscribe to receive email updates

With a subscription profile, you automatically receive updates without having to return to the website and check for changes

Just In

Phillis Wheatley: the First Black Woman to Publish a Book

After being snatched from her parents home in West Africa and sold into slavery in Boston, Phillis Wheatley became the first African American to publish a book of poetry in 1773.

More Articles Like This