Over time, the cedi was competitive against major trading currencies, particularly the US dollar, though it became quite volatile at times.

At the beginning of January 2022, the cedi was trading at a rate of GH¢5.9 to the US dollar, according to data from the Bank of Ghana.

But on March 15, 2022, the cedi passed the GH¢8 mark to sell at GH¢8.12 pesewas.

The Euro was also selling at GH¢8.33 pesewas and buying at GH¢8.53 pesewas.

Shortly after the aforementioned rate, the cedi depreciated to GH¢6.02 at the interbank level, indicating a depreciation of nearly 12%.

Cedi hits GH¢10 mark in September

In September, the government tried putting in some measures to stabilize the free fall of the local currency, as it was selling at GH¢10 to $1.

In the same month, the Minister of Finance, Ken Ofori-Atta disclosed that the cedi had lost its value by 31.7 percent to the US dollar.

Cedi reaches GH¢11 mark in October

The cedi took a climb to GH¢11 to $1 in October. This came as a shock to many as Ghanaians were expecting an appreciation from the local currency against the trading currencies.

As part of measures to avert the depreciation of the cedi, the government run to the International Monetary Fund (IMF) for financial bailout.

The IMF bailout would help rescue the cedi, as well as, stabilize the economy that has taken a nose dive.

While Ghana awaits the money from IMF, international credit rating agencies; Moody's, Fitch, Standard and Poors', remarked that Ghana's economy looked gloomy.

This led to a hike in the monetary policy rate by the Bank of Ghana to 24. 5%. The hike in the policy rate was to stem the soaring inflation which has subsequently led to an increase in goods and services.

Cedi depreciates further, highest decline in 22 years - Report

Bloomberg has on Thursday, October 20, 2022, reported that Ghana’s local currency – the cedi - has diminished in value by 9.6%.

This, the news portal said, makes the total loss of the cedi in 2022 almost 52%, the highest recorded in 22 years.

The free fall of the cedi now places the currency at the 148 position of worst performing currencies in the world.

Cedi appreciates

The Ghana cedi regained more than 61 per cent of its value against some of the country’s major foreign trading currencies in recent times.

The currency had lost up to 54 per cent of its value at the end of November, making it one of the worst performing currencies in the world.

Meanwhile, Government of Ghana is targeting an amount of $3 billion over a three-year period from the International Monetary Fund (IMF) once an agreement on a programme is reached.

The new amount requested as a loan is double the government’s initial target of $1.5 billion.

The IMF programme is aimed at restoring macroeconomic stability and safeguarding debt sustainability among many others.

UK based Economist Intelligence Unit (EIU) has however predicted doom for the cedi.

It said the cedi will depreciate about 22% against the dollar in 2023.

This, EIU said will rank the local currency as the third weakest performing currency on the African continent.

ESA/BOG