Ghanaian Cedi Appreciates More than 30% in 4 Days – Currency Recovery Follows IMF Loan Announcement – Finance Bitcoin News
Just a few months after becoming the world’s worst-performing currency, the Ghanaian cedi rebounded against the US dollar from just over 14 units per dollar on December 1 to 8 units per dollar by December 16, new data has shown. The currency’s resurgence appears to have been fueled by reports that Ghana has secured a $3 billion loan from the International Monetary Fund (IMF).
The cedi appreciates by over 36% in just four days
After hitting a record low of more than 14 cedis to every dollar, the Ghanaian currency’s exchange rate against the US dollar has increased to 8 cedis per dollar by December 16, the latest data from the Bank of Ghana (BOG) has shown. According to the BOG data, the fastest recovery occurred between December 12 and December 16 when the cedi rose by more than 36%.
Bank of Ghana exchange rates pic.twitter.com/HREBnMQezt
— Bank of Ghana (@thebankofghana) 16 December 2022
As previously reported by Bitcoin.com News in October, a lack of the dollar as well as Ghana’s economic woes had driven the cedi’s plunge, which saw it named the world’s worst performing currency. At the time, the Ghanaian authorities are said to have pinned their hopes on an economic rescue package from the International Monetary Fund (IMF).
Ghana finally secures IMF bailout
According to a report in Al Jazeera, the IMF and the Ghanaian government finally agreed on a $3 billion loan package. As part of the December 13 agreement, Ghana will reportedly use the funds to help those most affected by the worsening economic conditions, restore financial stability and bring the country’s national debt under control.
Commenting on behalf of the international lending institution, Stephane Roudet, the IMF’s chief of mission to Ghana, reportedly said:
The Ghanaian authorities have committed to a comprehensive economic reform programme, building on the government’s Post-COVID-19 Program for Economic Growth (PC-PEG) and tackling the deep challenges facing the country.
Roudet added that as part of the agreement, Ghana will embark on structural reforms that will “underpin the fiscal strategy and ensure lasting consolidation.”
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