Ghana:Experts Describe Performance of Cedi As Mixed In 2021.

January 04, 2022

By Maxwell Nkansah

Getting to a few days to end of 2021, analysts and currency traders have described the Ghana cedi’s performance as mixed in 2021. This is due to the 9% depreciation rate to the dollar on the retail market, though it has lost about 3% in value on the interbank market.

In comparison to that of last year, the performance of the cedi has been slightly worse, beating analysts and research institutions forecast, marginally.

According to Senior Currency Analyst at Databank Research, Courage Martey, commented that, the cedi’s performance in 2021 can be said to be that of a mixed performance, if the full year performance in 2021 and full year performance in 2020 are compared.

He added that, the volatility of the currency this year makes it difficult to predict the outlook of the local currency. The spread emphasizes the volatility or pressure that the currency endured in the second half of this year and mostly the 4th quarter of this year.

The cedi is presently selling at ¢5.97 to the dollar on the interbank market but going for ¢6.37 on the retail market. Even though the Ghana cedi was classified among African currencies with the ‘Worst Spot Returns in November, 2021, it was actually the best performing currency in Africa in the first quarter of 2021.

A combination of factors including increased corporate demand for the US dollar and the exit of the country’s bond by some foreign investors however put pressure on the local currency this year.