BREAKING NEWS: Cedi Depreciation Against The Dollar; EIU Drops Bad News On Ghana’s Cedi; Big Trouble Looms -See Statement Released
The Ghana cedi has been projected to lose about 22% to the dollar in 2023.
This is noted to move the cedi to rank as the 3rd weakest performing currency on the African continent, according to its Africa Outlook 2023 Report.
UK-based Economist Intelligence Unit (EIU) who made the projection added that it expects the exchange-rate weakness to continue into 2023, albeit to a lesser degree.
“Most African currencies have lost substantial value against the US dollar during 2022 and we expect exchange-rate weakness to continue into 2023, albeit to a lesser degree,” myjoyonline quoted the EIU.
Ghana’s cedi depreciated against the dollar by more than 50% for the first 11 months before beginning to gain stability in the last month of 2022.
However, the EIU noted that the currencies of the troubled states of Sudan and Zimbabwe will be among the weakest in the world during 2023.
Also, Ghana, Malawi, Sierra Leone, Ethiopia, and Egypt—” which will all suffer from elevated rates of inflation—will see their currencies depreciate by more than 10% against the US dollar.”
African powerhouses of Nigeria, South Africa, Angola, Algeria, and Kenya will not be exempted from the currency weakness and will experience further depreciation of their currencies against the US dollar in 2023.
The Zambian kwacha which is currently the strongest on the continent has been projected to continue its performance as Africa’s best-performing currency in 2023 with an appreciation of about 8% in value to the American greenback.
The Kwacha will be followed by Burkina Faso’s CFA and Cameroon’s which are all expected to appreciate against the US dollar.
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