De Ghana cedi be de worst-performing currency among top currencies for Africa according to Bloomberg.
Out of de 15 top currencies wey dem study, Ghana dey rank for de bottom whilst Namibian dollar dey rank number one.
South African Rand den Botswana Pula rank second and third respectively.
De Naira ranks number 10 among de top performing currencies, with 0.70% depreciation compared to de Ghana cedi wey catch 14.2% depreciation
De depreciation of de Ghana cedi double dis week from 7% to 14.2% dis week.
End of Di one wey oda users dey read well well
De Ghana cedi which dey trade at Ghc6.02 to $1 dollar at de beginning of January 2022 currently dey trade at Ghc7.22 to $1 dollar.
Two years ago, de same cedi make record as de best performing currency against de US dollar in de world.
So what exactly happen? Ghanaian economist Professor Bokpin explain give BBC Pidgin.
Doubt about Ghana fiscal sustainability
Professor Bokpin explain say investors dey lose confidence in de fiscal outlook of de country.
"Some level of doubt dey around de fiscal sustainability path wey dem outline in de 2022 budget," he talk.
"Sake of dis, dem go like cover themselves and exit wana market before tins make worse" de Ghanaian economist add.
Dat be what dey happen for de market right now.
De central bank get some level of reserves but e no go fit be sustainable in de long term.
Regional/Global challenges
De recent global tensions between Ukraine and Russia be another challenge on de cedi.
"In de global financial market, nobody dey like uncertainty….some level of stability, certainty de predictability be helpful for de market" Prof Bokpin reveal.
So although bombs den gunfire dey reach Ghana, de panic de war dey create make people dey sit on dia money instead of investing sake of de market make unpredictable.
Lack of sustainability
Another reason why de cedi dey underperform be de lack of sustainability.
"If de performance of de cedi no be from structural reforms, den sustainability be issue" Professor Bokpin reveal.
A couple of years ago we borrow heavily to shore up wanna international reserves, but dis no be something govments go fit sustain.
What central bank fit do he say dem go increase de short term interest rate to mop up liquidity from de market.
Sake of de cedi dey depreciate, people dey convert dia monies into foreign currency.
Sake of dis, more pressure dey on de dollars which dey make de cedi underperform even more.
So if govment increase increase de short term interest rates, more people go now start dey release dia monies to de central bank.
And dem for do dis immediately so say people no go interpret de high interest rate as investment as a way for govment to escape major problems.
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'Ghana Cedi be worst performing currency among top Africa currencies' – BBC
