A declining currency remains one of the most disruptive economic concerns confronting several African countries, with recent developments in Ghana and Uganda showing the risk of currency volatility.
In Ghana, sustained pressure on the cedi has become a distinguishing element of the country's current economic situation, as seen on Reuters.
The currency's persistent devaluation versus the US dollar is being driven by high demand for foreign exchange, particularly from energy importers and firms repatriating profits.
With little FX inflows to balance demand, the cedi has struggled to remain stable.
The result is greater import costs, rising inflationary pressure, and more uncertainty for enterprises that rely significantly on foreign goods.
