These currencies have tanked this year — and one is down over 75% against the dollar

Foreign exchange markets have endured a rocky ride in 2022, but in some countries, a combination of geopolitical pressures and central bank missteps has pushed currencies into a “death spiral.”

A stronger dollar over the course of the year, as investors flocked toward the traditional “safe haven” amid the deluge of geopolitical and macroeconomic shocks, has weighed heavily on many emerging market currencies.

Major oil producers and countries with central banks that have hiked interest rates decisively are generally faring better.

Steve Hanke, professor of applied economics at Johns Hopkins University, publishes a regular list of the year’s worst-perfoming currencies -- and Ghana’s cedi is near the top.

The cedi hit a fresh record low against the dollar on Wednesday last week, at one stage hitting the 14.24 mark before recovering slightly. It started the year trading at just over 6 cedis to the dollar, according to Refinitiv data, meaning the greenback has strengthened by more than 132% against the West African nation’s currency.