Ghanaian Currency Slips to Another Low Versus the US Dollar – The Ghanaian cedi just became the latest African currency to plummet to a new low against the U.S. dollar in 2022, as its unofficial exchange rate reportedly dropped to C12.10:$1. As a result of this most recent decline, the cedi, which began the year trading at approximately $6.25 per dollar, has already lost more than 90% of its value in less than ten months.
According to a local report, the devaluation of the cedi has diminished the capital of several traders. According to the report, some merchants in the Ashanti area of Ghana have closed their stores in protest of the cedi’s depreciation and Ghana’s rising cost of living.
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In addition to the Ghanaian cedi, other African currencies have declined against the U.S. dollar. These include the Nigerian naira, the Ethiopian birr, and the South African rand. As stated, the U.S. Federal Reserve’s aggressive monetary tightening stance, which has resulted in many interest rate hikes, is leading the U.S. dollar to strengthen relative to many other currencies. Inflation has been exacerbated by a strengthening dollar in several countries, including Ghana.
According to a recent release by the Ghana Statistical Service (GSS), the cocoa-producing country’s September inflation rate was 37.2% year-over-year. This number is 3.3 percentage points higher than August’s rate. However, according to the most recent figures from the statistical agency, prices only increased by 2% between August and September.
In a separate event, the GSS reported that it has altered the method by which it estimates the inflation rate. According to government statistician Samuel Kobina Annim, the base year has been moved from 2018 to 2021. In addition, the region weights were modified.
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