“A simple google check and referencing the rate at which other currencies are depreciating against the dollar will have shown that the Cedi in terms of value is indeed the third strongest currency in Africa.”
Verdict:
GhanaWeb has verified Owusu Bempah’s claim and finds the statement inaccurate.
Full Text:
The Deputy Communications Director for the governing New Patriotic Party (NPP) Owusu Bempah stated on Wednesday, October 19, 2022 through a press release that the Ghana Cedi is the third strongest currency in Africa.
According to him, persons who described the Cedi as the worst-performing currency in the world are mere propagandists and therefore challenged them to name any currency in Africa stronger than the Cedi aside from the Tunisian Dinar and Libyan Dinar.
Verification
Data from global financial news, research and data organization, Bloomberg shows that the Cedi is currently the worst-performing currency against the US dollar in the world.
Bloomberg measures the strength and performance of global currencies by comparing currencies against more stable currencies like the US dollar, UK pounds and the Euro in real-time.
In its latest tracking of 148 currencies across the world, Bloomberg projected the Cedi depreciated by 45 percent this year and on Monday, October 17, 2022 alone, the Cedi depreciated by 3.3 percent to trade at GH¢11.2750 to $1 and currently stands at GH¢13.55 to $1.
According to Bloomberg, this makes the Cedi the worst-performing currency in the world and Africa, overtaking the Sri Lanka Rupee.
Specifically, on the African continent, Bloomberg in August 2022 tracking ranked the Cedi as the worst performing currency among African currencies with the “Worst Spot Returns”
The cedi, at the time, recorded -28.82 percent depreciation to the dollar as of August 8, 2022, to sell at nearly GH¢9 to a dollar.
The reports and tracking by Bloomberg have been corroborated by renowned Ghanaian Economist, Professor Godfred Bokpin in an interview with BBC Pidgin who revealed that the Cedi is even performing worse on the Black market where it is traded at over GH¢12 to $1.
In addition to this, Checks by GhanaWeb Business at some forex bureaus in Accra show that the cedi is currently selling at GH¢13.65 to $1 as of October 20 while the Bank of Ghana is selling at a rate of GH¢11.31 as of October 19.
According to AfriSwap, the UK Pound is selling at GH¢14.50 while the Euro is going for GH¢12.40 as of October 20, 2022.
Professor Steve Hanke, a Professor of Applied Economics at Johns Hopkins University and famous for measuring the global economics and strength of global currencies rated the Cedi as the lowest-performing currency in the world.
Conclusion:
From the above data and figures provided, the GhanaWeb FactCheck team finds Owusu Bempah’s claim that the Cedi is the 3rd strongest currency in Africa inaccurate.
The Cedi is currently the worst-performing currency against the dollar in the world, overtaking the Sri Lanka Rupee as of Monday, October 17, 2022.
EAN/MA
File photo of Ghana cedis notes