🌼It’s official: Ghana’s cedi now world’s worst-performing currency against US dollar
Ghana’s cedi slumped to become the world’s worst-performing #currency this year as #investors continued to squeeze foreign capital to the west African country before a deal with the #InternationalMonetaryFund (IMF)
The currency of the #world’s second-biggest #cocoa producer depreciated as much as 3.3% Monday, before paring the loss to 11.2750 per dollar at 3:30 p.m. in the capital #Accra. That took its losses this year to more than 45%, the most among 148 currencies tracked by #Bloomberg.
The cedi’s slide has accelerated in the past month as #Ghana began formal negotiations with the #IMF for an extended credit facility. The country is hoping to receive up to $3 billion in loans over three years under the arrangement to spur its finances and support the balance of #payments.
“Investors were expecting to hear something in #Washington last week but unfortunately nothing emerged,” Simon Quijano-Evans, a #London-based economist at Gemcorp Capital, said in emailed comment, referring to the week-long IMF annual meetings that ended Oct. 16. “It was radio silence.”
The country sought help from the IMF after losing access to the #Eurobond market this year and as homegrown policies, including cutting 2022 discretionary expenditure by up to 30%, failed to stem a selloff in its international #bonds. The premium #investors demand over #USTreasuries to hold Ghana #debt has widened to 2,669 basis points. https://lnkd.in/eAqJGaCD
Ghana 🇬🇭 is an #AfCFTA member country and home to the AfCFTA Secretariat
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