- Ghana’s Cedi is last week’s best performing currency in the world, according to Bloomberg.
- The currency’s appreciation is a result of the reorganization of local debts.
- Ghana, a few months back, had one of the worst performing currencies.
Currently, the Ghanaian Cedi is recorded as the best performing currency in the world.
This short burst of positive momentum is as a result of Ghana’s plan to reorganize its local debts.
This impact is courtesy of the $3 billion bailout the country has been received from the International Monetary Funds.
According to Blomberg; “The cedi has rallied 15% in the past five days, the biggest advance among about 150 currencies tracked by Bloomberg. That’s a turnaround for an exchange rate that had lost half of its value this year and occupied the bottom slot in the charts.”
More extracts from the report read, “The currency was the cheapest in Africa, more than 30% undervalued versus its 25-year history last week, so some rebound after the huge fall recently isn’t that surprising,” said Charles Robertson, the global chief economist at Renaissance Capital Ltd.
A few months back, the exact opposite of this news was reported, revealing that the Ghanaian Cedi was the worst-performing currency in the world.
This news sparked outrage and protests on the streets of Accra. The protesters also made their way to the Parliament where several MPs started to call for the dismissal of the country’s finance minister Ken Offori-Atta.
Drama within the government chambers quickly ensued and fortunately for the finance minister he was voted to retain his position.
This is perhaps a result of some of his office’s initiatives, one of which is directly linked to the appreciation of the Cedi.
Ghana is one of Africa’s most prominent regions, its recent history with governance and development has been impressive, to say the least. So, it’s not far-fetched to think that this country can recover from its worst economic crisis in decades.