SHARE

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

Must Read

Top 10 Smallest Countries in Africa by Land Area

The Republic of Seychelles is a country roughly 1500km off the coast of East Africa. And It is the smallest country in Africa.

7 Significance And Uses Of The African Waist Beads

Waist beads also called Ileke by the Yorubas are a traditional African accessory that are made from small pieces of glass, plastic, wood, or metal which are pierced and strung together. They are worn around the waist/hips mostly by females.

Female Slave Traders: Meet Niara Bely, the African Queen Who Doubled as a Slave Trader in the 1800s

Niara Bely Also known as Elizabeth Bailey Gomez, was a African queen who also doubled as a slave trader in nineteenth-century Guinea.
SHARE



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.



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.

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

Top 10 Smallest Countries in Africa by Land Area

The Republic of Seychelles is a country roughly 1500km off the coast of East Africa. And It is the smallest country in Africa.

More Articles Like This