Tag Archives: cedi
cedi: Latest News
Kurt Davis Jr., 8:02 am AFKI Original
The economies of sub-Saharan Africa have felt the pain of 2015 and 2016, and African currencies have experienced volatility as a result. The year 2017 has been a partial year of recovery or adjustment, but there remain a selection of African economies that continue to experience issues with their currencies as a reflection of the problems that are affecting them at home. Here we take a look at four prime examples.
Lillian Mutiso, 6:32 am AFKI Original
Ghana is one of the most stable democracies in Africa, since attaining independence in 1957. It has a population of 25.5 million people. Gold, cocoa and oil are the country’s main exports. Since the start of 2016, inflation, energy crisis and a spiraling debt level have hit its economy. Below are 12 things to know before investing in the West African nation.
Kevin Mwanza, 5:05 am
“The last threat to factor in would be the 2016 election year speculation. Capital inflows will be reduced whilst capital outflows will increase in anticipation of a close election. Expectation is a peaceful outcome, however markets will price in any risk factors and this could exacerbate pressure for the period” Pianim said.
Kevin Mwanza, 4:47 am
African central banks, which have less than a tenth of the emerging-market foreign exchange reserves, are burning through their stockpiles faster than any regions in the world in a bid to stop local currencies from falling further against a globally stronger US dollar. Falling commodities prices coupled by interest rate hikes in the US have pushed many African currencies down against the dollar this year.
Kevin Mwanza, 4:04 am
On the other hand policymakers and central bankers across the continent are in a catch 22 position as their local currencies depreciate against a globally stronger dollar. For many central bank governors on the continent tightening liquidity on the money markets by raising interest rates and using other monetary tools at their disposal seem like the only best option they have in the short term.
Kevin Mwanza, 6:05 am
In 2014, African currencies depreciated an average of 10.4 percent as the US dollar strengthened against all major currencies in the world and commodity prices, which are a major revenue earner for many countries in the continent, fell to record lows. With these external factors persisting into the new year, the rout on nearly all African currencies has increased in 2015.
Staff, 4:27 am
Ghana’s cedi is expected to ride the wave of positive investor sentiment after the government’s successful negotiations with the International Monetary Fund, while other African currencies are likely to hold steady. The cedi has struggled against the greenback since mid-January, but held its own this week.
Makula Dunbar, 12:46 pm
Ghana’s economy is showing new signs of life after a turbulent year in which its gross domestic product plummeted and the value of its currency almost halved. Investor confidence has been boosted in recent months by a stabilisation of Ghana’s national currency, the cedi, and ongoing talks with the International Monetary Fund (IMF) about a loan package, according to Ekwow Spio-Garbrah, the trade minister.
Kevin Mwanza, 5:00 am
Ghana’s cedi currency is holding its ground against the dollar for the first time this year, traders and analysts said on Monday, after falling some 40 percent in the last eight months. The government’s decision last month to go to the International Monetary Fund for an assistance programme to tackle Ghana’s fiscal woes has boosted capital inflows, traders said. Central bank support and sales by local mines have also supported the cedi.
Jeffrey Cavanaugh, 3:10 am AFKI Original
Facing continuing collapse of its currency, the government of Ghana had decided to get help from the IMF. Since the beginning of the year the cedi has lost 40 percent of its value against the dollar, compounding double-digit losses of 2013. In January a cedi could buy $0.43 US. Now it has sunk to around $0.27 with no signs of the free-fall letting up.
- Real Estate