Naira gains double-digits against Cedi, Despite Ghana’s interest rate hike

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Ghanaian Cedi

has gained double-digits against , Despite Ghana’s interest rate hike

The Nigerian currency rose against the in the first quarter of 2022, despite Ghana’s central bank raising interest rates to offset shortfalls caused by global tensions in Europe.

The has risen 16.68 percent year to date (YTD) against the Ghana Cedi, demonstrating Nigeria’s strength in the region’s foreign exchange market.

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At the time of writing, the Ghanaian Cedi/Nigerian Naira (GHSNGN) was trading at a 5-year low of 56.895. The Naira has gained around 26.69 percent in the last five years, with the most recent decline occurring this year.

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The Bank of Ghana raised its primary lending rate by 250 basis points to 17%, signalling a tough stance against rising food and fuel prices, as well as a weakening local currency that has harmed investor confidence.

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Ghana’s cedi has lost roughly 20% of its value against the dollar this year, making it the most significant currency effect of Russia’s conflict with Ukraine.
GHSUSD was trading at 0.1369 at the time of writing, indicating a 17.12 percent drop against the US dollar (YTD).

In the last five years, the Ghana Cedi has lost 44.63 percent of its value against the US dollar.

The conflict between Russia and Ukraine is expected to have a significant impact on Ghana’s currency, especially in the construction, agriculture, and international trade sectors.

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In the recent past, Russia and Ukraine accounted for roughly 2.5 percent of Ghana’s total non-oil imports and 0.4 percent of Ghana’s total exports.

The most common Russian imports are grain, wheat flour, and fertilisers. In 2021, Russia accounted for roughly 28.7% of Ghana’s grain imports, while Russian grain imports accounted for 31.2 percent of total grain imports in the first two months of 2022. Russia supplied 50.0 percent of flour imports and 39.2 percent of fertiliser imports in the first two months.

Iron ore and steel are Ghana’s most important imports from Ukraine, accounting for more than 60% of total iron ore and steel imports. As a result, the construction industry will almost certainly face supply disruptions and higher steel and iron ore import prices.

That is all the latest information on Naira to Ghanaian Cedi

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