Ghana To Ask IMF Aid to Boost Currency

Ghana has said it will seek financial aid from the International Monetary Fund (IMF) to help strengthen the West African nation’s currency.

The cedi has fallen 40% against the US dollar this year, making it one of the world’s worst-performing currencies.

Ghana, once seen as a shining example of economic strength in the region, is also struggling with high inflation.

The country last went to the IMF for help in 2009, when it secured a $600m (£360m), three-year aid package.

Despite being a major exporter of gold, oil and cocoa, Ghana is struggling with large current account and budget deficits.

Last week, the country’s finance minister told the BBC the country would fix its currency problems itself and only go to the IMF as a last resort.

Many experts see the decision to go to the IMF as the first admission by the government that the economy is in bad shape.

via BBC

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Alfonso Esparza

Alfonso Esparza

Senior Currency Analyst at Market Pulse
Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, Alfonso Esparza established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency trader focused on North America and emerging markets. He has been published by The MarketWatch, Reuters, the Wall Street Journal and The Globe and Mail, and he also appears regularly as a guest commentator on networks including Bloomberg and BNN. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.
Alfonso Esparza