(Bloomberg) -- 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 International Monetary Fund.

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 US Treasuries to hold Ghana debt has widened to 2,669 basis points.

‘Original Sin’ Behind 1990s Asia Crisis Looms Over Emerging Debt

Holdings by foreign investors in outstanding domestic government and corporate bonds fell to 12.3% at the end of August, the lowest ever, from a 2022 peak of 17.3% in April, according to Central Securities Depository Ghana Ltd. data. The nation’s domestic bonds are currently trading at an average yield of 41.9%, the highest in emerging markets, according to indexes tracked by Bloomberg.

Ghana’s gross international reserves declined to $6.6 billion at end-September, enough to cover only 2.9 months of imports. That’s down from $10.7 billion a year earlier, which gave 4.8 months of import cover.

The currency, deriving its name from sedie, the local Akan language name for cowrie shell, has overtaken the losses of the Sri Lankan rupee, which has slid nearly 45% against the greenback this year as the country also seeks to unlock an IMF loan following a debt default.

(Updates cedi price, adds analyst comment.)

inoki247:
Anytime people say Ghana is better than Nigeria I feel like giving the person a dirty slap....


As at Today derr petrol is selling at 12.74 almost 900...


And you say Nigeria worst d way dere Dollar dey jump sef I no understand na per minute....

No be rate wey u buy dollar for morning u go buy am for night which kain Inflation be that.....

Wetin still sell for 11.95 this morning right now is selling at 12.47 which kain Inflation b dat...



I believe Africa is cursed with bad leaders na only to dey speak accent dat Ghana president sabi...


At least Nigeria can still lie say na Over population buh what abt all this small countries...

apart from Cefa wey dey du strong head wey no gri crash buh see Cedis na him worst pass right now..

LeoDeKing:

@ the emboldened, the people saying Ghana is better than Nigeria are not Nigerians. They have taken it as a duty upon themselves to insult Nigeria all their lives.

That is why any good news about Nigeria always choke them.

Okoroawusa:
Personally I don't think it's Addo 's fault. The whole world is in a serious mess right now and 2023 is not looking good either.
However if you live in Ghana I will advise you to run. The economy is about to blow tube and tire.

NgeneUkwenu:
(Bloomberg) -- 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 International Monetary Fund.

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 US Treasuries to hold Ghana debt has widened to 2,669 basis points.

‘Original Sin’ Behind 1990s Asia Crisis Looms Over Emerging Debt

Holdings by foreign investors in outstanding domestic government and corporate bonds fell to 12.3% at the end of August, the lowest ever, from a 2022 peak of 17.3% in April, according to Central Securities Depository Ghana Ltd. data. The nation’s domestic bonds are currently trading at an average yield of 41.9%, the highest in emerging markets, according to indexes tracked by Bloomberg.

Ghana’s gross international reserves declined to $6.6 billion at end-September, enough to cover only 2.9 months of imports. That’s down from $10.7 billion a year earlier, which gave 4.8 months of import cover.

The currency, deriving its name from sedie, the local Akan language name for cowrie shell, has overtaken the losses of the Sri Lankan rupee, which has slid nearly 45% against the greenback this year as the country also seeks to unlock an IMF loan following a debt default.

(Updates cedi price, adds analyst comment.)

©2022 Bloomberg L.P.

https://www.bnnbloomberg.ca/ghana-currency-slumps-to-world-s-worst-performer-versus-dollar-1.1833597#:~:text=(Bloomberg)%20%2%2%20Ghana's%20cedi%20slumped,with%20the%20International%20Monetary%20Fund.

Mynd44 nfpmod

sreamsense:
Biafrans who normally use mouth to run economy of yet to acheive biafra should learn from this, theory is different from practical. They will be using mouth to form alliance with yorubas when they acheive biafra without minding if yorubas will close its border to that imaginary biafra nation

agadez007:
Bad news but Good news to us,there is this Ghanaian lady on TikTok whose contents are solely based on comparing the Naira and the Cedis,”if I take this 200 hundred cedis to Nigeria,I will be a billionaire in Nigeria” she says and you see some dumb Nigerians supporting her,foolish people that don’t know the real value of worthless cedis