The Ghana Cedi placed 14th among the league of African currencies in 2021, despite an impressive run during the first half of the year, Bloomberg tracking of African currencies has revealed.
However, the local currency was classified among the currencies with the ‘worst spot returns’.
According to Bloomberg, the cedi lost 4.98% in value against the US dollar in 2021, although data from other research institutions show a slightly lower decline in the value of the local currency to the American currency.
However, in West Africa, the cedi placed 3rd in terms of performance.
The amalgamation of factors including increased corporate demand for the US dollar and the exit of the country’s bond by some foreign investors put pressure on the local currency in the last two months of the year.
Again, the importation of goods during the final part of 2021 by traders to sell during the Christmas period, increased demand for the American currency.
Despite a rebound in oil prices, improved exports, amongst others, the dollar inflows were not enough to stabilise the local currency.
Analysts are however uncertain about the outlook of the local currency, going forward.
Meanwhile, on the African continent, the Zambian Kwacha was the best performing currency last year. It was followed by the Angolan Kwanza and Mozambique New Metical.
CURRENCIES WITH ‘BEST SPOT RETURNS’ – YEAR-TO-DATE RANKINGS
Zambian Kwacha 26.74% 1st
Angola Kwanza 17.61% 2nd
Mozambique New Metical 16.76% 3rd
Guinea Franc 7.24% 4th
Uganda Shilling 3.09% 5th
Tanzania Shilling 0.61% 6th
Egyptian Pound 0.15% 7th
CURRENCIES WITH ‘WORST SPOT RETURNS’ – YEAR-TO-DATE RANKINGS
Djiboutian Franc -0.11% 8th
Congolese Franc -1.25% 9th
Gambian Dalasi -1.92% 10th
Kenyan Shilling -3.51% 11th
Mauritian Rupee -4.03% 12th
Rwandan Franc -4.52% 13th
Ghana Cedi -4.98% 14th
Nigerian Naira -5.02% 15th
Malawian Kwacha -5.34% 16th
Botswana Pula -7.68% 17th
South African Rand -7.72% 18th
Sierra Leone Leone -9.98% 19th
Ethiopian Birr -22.20% 20th