The Ghanaian cedi became the latest African currency to hit a new low against the US dollar, albeit in unofficial foreign exchange markets, after falling to a rate of about 12 to 1. 2022 at around 6.25 to the dollar. The Ghanaian cedi, which began trading at around 6.25 to the dollar, is currently trading at around 6.25 to the dollar. The cedi is currently losing over 90% of its value against the strong yen and weak dollar.
Protests Against the Falling Cedi
Ghana’s cedi recently fell to an unofficial exchange rate of $12.10:$1 against the US dollar, making it the lowest African currency in 2022. In the wake of this latest decline, the cedi, which began trading at about $6.25 to the dollar, has lost more than 90% of its value in just over 10 months.
according to one local report. The depreciation of the cedi resulted in damage to the capital of some traders. According to the report, some traders in the Ashanti region of the country closed their stores in protest against the depreciation of the cedi and the rising cost of living in Ghana.
Besides the Ghanaian cedi, other African currencies that have depreciated against the US dollar include Nigeria’s naira, Ethiopia’s birr, and South Africa’s rand.As reported by Bitcoin.com News, the US Federal Reserve’s aggressive monetary tightening policy, which has repeatedly raised interest rates The Federal Reserve’s aggressive policy of tightening monetary policy has caused the dollar to strengthen against a number of currencies. The strong dollar, in turn, has fueled inflation in many countries, including Ghana.
Ghana’s inflation rate surged again
Meanwhile, according to a recent releaseby the Ghana Statistical Service (GSS), the cocoa producing country’s year-on-year inflation rate was 37.2% in September. This figure is 3.3 percentage points higher than the August rate. However, prices rose only 2% from August to September, according to the latest data from the statistical agency.
In another development, the GSS announced that it has changed the way it calculates inflation; Samuel Kobina Annim, a government statistician, reportedly said the base year has changed from 2018 to 2021. Additionally, regional weights were adjusted.
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