In 2020, the Ghana cedi was rated as the best performing currency in the world against the US dollar by an international media and research organization.
Ghana and Zambia’s economies have been battling fiscal slippages while rising debts have raised investor concerns about their economic prospects.
Whereas Zambia agreed to a $1.4 billion IMF bailout in December 2021 for a critical three-year debt restructuring program, Ghana is adamant about returning to the Bretton Woods institution for a similar program to build investor credibility.
Crude oil has been trading above $100 per barrel, but the commodity’s foreign inflows have done little to help stabilize the cedi.
The World Bank’s five-year $4.5 billion Country Partnership Framework, on the other hand, is expected to inject some dollar inflows into the economy and help stabilize the cedi’s value.
Bloomberg lists the Gambian dalasi, New Sudanese pound, and Ethiopian birr as African currencies with the “worst spot returns.”
However, the Angolan Kwanza, Namibian dollar, and South African rand are among the African currencies with the “Best Spot Returns.”
Source: Africanews
