Ghana’s cedi fell to the world’s worst-performing currency against the dollar as investors continued to pour money into the West African country ahead of its deal with the International Monetary Fund.
The currency of the world’s second-largest cocoa producer fell 2% on Monday to 11.2625 per dollar, bringing its year-to-date losses to 45.1%, the highest among 148 currencies tracked by Bloomberg.
The currency derived its name from ‘sedie,’ the local Akan language name for cowrie shell, swapped places with the Sri Lankan rupee, which is now the second worst performer this year, falling 44.7% against the greenback.
Ghana began discussions with the IMF in July 2022, but formal negotiations for an extended credit facility program with the lender only began last month.
Under the agreement, the country hopes to receive up to $3 billion in loans over three years to help boost its finances and balance of payments.
Ghana reversed course to seek IMF assistance after domestic policies, such as cutting expenditures by up to 30% by 2022, failed to halt a selloff in its international bonds.
The premium investors demand for holding Ghana debt over US Treasuries has increased to 2,669 basis points.
Credit: Bloomberg
