Just some years ago the Ghanaian economy was thought to be a model economy and one that other African economies must emulate. Five years down the line it is in dire shape. Inflation rate is 15% and treasury bills rate are as high as 24%. It’s therefore no surprise that their currency, Cedi has now depreciated by about 33% this year alone, making it the worlds worst currency this year. The depreciating currency whilst boosting revenue from imports is driving inflation up and the country, like Nigeria is a net importer. Companies can’t finance their operations through cheaper foreign denominated loans due to foreign exchange risk as well as fear of hyper inflation. It’s a tough period for the country and one can only wish them well.
