Indexing government scandals one at a time
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 took its losses this year to more than 45%, the most among 148 currencies tracked by Bloomberg.
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.
Ghana reversed course to seek IMF help after homegrown policies, including cutting 2022 discretionary expenditure by up to 30%, failed to stem a selloff in its international bonds.
Oct. 17, 2022
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