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Ghana’s cedi ranked best performing currency in the world against the U.S. dollar

Ghana’s cedi has emerged as the world’s best-performing currency against the U.S. dollar, according to a Bloomberg report.

The report the currency extended its advance on Monday ahead of a $3 billion Eurobond sale that is expected to boost the government’s coffers.

Bloomberg says among more than 140 currencies it tracked, Ghana’s currency has strengthened 3.9 percent in 2020, a stark contrast to last year when it weakened 13 percent.

Ghana’s cedi has been one of the strongest currencies in Africa. One U.S. dollar currently exchanges for 5.44 cedis. Experts have, over the years, attributed the West African country’s currency position to the country’s democratic ideals and its well-managed economy. Other financial analysts say its position is indicative of growth and macroeconomic stability.

The value of a particular currency determines its purchasing power in the international market. It also reflects its economic situation as compared to other countries.

Financial experts say that the stability of a country’s currency further helps to prevent frequent fluctuations in its value, and this provides investors with the necessary confidence to invest in the economy of a country.