It fell to an average rate of 12:1 and became the most recent African currency to reach a new low against the U.S. dollars, even though it was trading on an informal foreign exchange market. After trading at 6.25 to the dollar in 2022, it has now fallen back to $6.25.The cedi has lost more than 90% to the appreciating greenback.
Protest Against the Cedi’s Depreciation
After its official exchange rate against US dollars slipped to C12.10, the Ghanaian cedi became the most vulnerable African currency. The cedi has lost more than 90% in the past ten months, from a starting price of 6.25 dollars.
According to one local report, the cedi’s depreciation has resulted in the impairment of some traders’ capital. As per the report, some traders in the country’s Ashanti region have protested against the cedi’s depreciation and Ghana’s rising cost of living by closing their shops.
Besides the Ghanaian cedi, other African currencies that have lost ground versus the U.S. dollar include Nigeria’s naira, the Ethiopian birr, and the South African rand. As has been reported by Bitcoin.com News, the U.S. Federal Reserve’s aggressive monetary tightening policy, which has seen it repeatedly hike interest rates, is causing the U.S. dollar to appreciate versus many currencies. The strengthening of the dollar has fueled inflation in many other countries, such as Ghana.
Ghana Inflation Surges Again
Meanwhile, according to a recent announcement by the Ghana Statistical Service (GSS), the cocoa-producing country’s year-on-year inflation rate for September stood at 37.2%. This rate is 3.3% higher than that of August. However, according to the statistical agency’s latest data, prices only went up by 2% between August and September.
Another development was that the GSS has altered the method it uses to calculate the inflation rate. Samuel Kobina Annim a government statistician stated that the base years had been moved from 2018 to 2021. A number of weight adjustments were made to the regional regions.
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