Wednesday 31 December 2014

Ghana's cedi, Zambia's kwacha worst African currencies in 2014


Ghana's cedi and Zambia's kwacha are set to end 2014 as the worst performing African currencies among a small basket that are relatively liquid, as falling commodity prices take a toll on some of the continent's "lion" economies.

The cedi has lost about 27 percent in 2014, one sign of a fiscal crisis in an economy that grew strongly in previous years on gold, cocoa and oil exports. Economic growth in 2015 is seen slowing to 3.9 percent in 2015 from an estimated 6.9 percent this year.

The cedi slumped around 40 percent earlier this year but a Eurobond issue, cocoa loan inflows and talks with the International Monetary Fund on a financial assistance programme helped it recoup some losses.

Zambia's kwacha is ending the year on the backfoot amid tax rows with mining houses, a lower growth forecast and a looming election.

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