History Shows Ghana’s Cedi May Weaken Further From Record Low

  • Charts show risk of double-digit drop for cedi in six months
  • Rising fuel costs pushed producer inflation to seven-year high
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Ghana’s currency is trading near a record low and a long-term momentum indicator shows it’s at risk of further depreciation.

The cedi has lost 18% against the dollar this year, making it the worst-performing currency in Africa after Zimbabwe’s dollar. A 28-year analysis of the so-called Relative Strength Index, or RSI -- a measure of the rate of change in prices -- shows the pain may be far from over.