Bloomberg in its weekly report has recognized the Ghana cedi as the best performing currency in the world for the period.
According to Bloomberg, Ghana, a few months back, had one of the worst performing currencies but its weekly report stipulated that, there has been an appreciation in the Cedi as a result of Ghana’s reorganization of its local debts.
“This short burst of positive momentum is as a result of Ghana’s plan to reorganize its local debts,” It stated.
Bloomberg report revealed that, the rise in the currency value is coming alongside optimism of realizing the $3 billion bailout the country has been requesting from the International Monetary Funds (IMF) for months.
The cedi has rallied 10% 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.
Charles Robertson, the global chief economist at Renaissance Capital Ltd. in London also indicated that, the cedi 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.
According to Bloomberg’s report, the exact opposite of this news was reported few months back, revealing that the Ghanaian Cedi was the worst-performing currency in the world.
Not long ago, there was a very sharp fall in the value of the cedi in relation to the value of other international currencies. But in this short period, the cedi is increasing in its value in the currency market, it disclosed.
Ghana’s Finance Minister Seems To Be Playing His Role
Bloomberg’s Report further indicated that, the news of the cedi depreciation sparked outrage and protests hit 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, it stated.
“This is perhaps a result of some of his office’s initiatives, one of which has directly linked to the appreciation of the Cedi.”
Bloomberg Report
In conclusion, Bloomberg acknowledged Ghana for trying its way out despite the numerous challenges.
“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.”
Bloomberg Report
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