Ghana’s currency dropped past 10 to a dollar for the first time as investors await a financing deal with the International Monetary Fund.
The cedi has dropped more than 38% this year, making it the worst performing currency after Sri Lanka’s rupee among 150 economies tracked by Bloomberg.
Investors have dumped the cedi and the nation’s bonds this year as concerns about the impact of a global slowdown in demand for commodities such as cocoa have risen.
Those movements fed an inflationary surge and pushed Ghana to begin talks with the IMF in July over an assistance package of as much as $3 billion.
The nation’s central bank earlier this month increased its benchmark interest rate by the biggest margin on record to 22% to slow the decline.
A depreciating currency will add to the import bill of a country that purchases most of its fuel from abroad and has been struggling with inflation at the highest levels since 2003.
See Also:
