(3 minutes read)
Ghana’s currency-Cedi- depreciated 3.3%, before paring the loss to 11.2750/$. That took its losses this year to more than 45%, according to some reports.
Ghana’s currency-Cedi- depreciated 3.3%, before paring the loss to 11.2750/$. That took its losses this year to more than 45%, according to some reports.
The value of the Cedi has been eroding since the beginning of the year, so much so, the west African country has been negotiating with the IMF for a bailout package- an extended credit facility- for the US $ 3 billion in loans, which has to be disbursed over three years. The response of the IMF to the country’s demand has been lackadaisical since Ghana’s debt sustainability plan is not in compliance with the IMF standards.
The country sought help from the IMF after losing access to the Eurobond market this year. Its policies, including cutting 2022 discretionary expenditure by up to 30%, failed to attract green bonds. Holdings by foreign investors in outstanding domestic government and corporate bonds fell to 12.3% at the end of August, from a 2022 peak of 17.3% in April. The nation’s domestic bonds are trading at an average yield of 41.9%, the highest in emerging markets.
Read Also:
https://trendsnafrica.com/ghana-raises-the-farmgate-price-for-cocoa/
https://trendsnafrica.com/who-warns-against-ghanas-rising-air-pollution/
https://trendsnafrica.com/ghana-government-signs-25-year-deal-with-south-african-consortium/
Ghana’s gross international reserves declined to US $6.6bn in September from US 10.7 billion, a year ago, enough to cover only just under three months of imports. The currency has overtaken the losses of the Sri Lankan rupee, which has slid nearly 45% against the greenback this year. A few days ago, www.trendsnafrica.com has also reported about the sorry plight of Kenyan currency, which also eroded considerably against the US dollar.
