Ghana Cedi’s drop for months portends deeper losses for currency – Report
Ghana’s currency has lost more than half of its value this year, but the weakening trend may not be about to end any time soon if history is any guide.
The cedi, the worst-performing among 148 currencies tracked by Bloomberg, is down more than 57% against the dollar this year and is on track to slip for a seventh straight month in November.
The last such streak was in 2015. Investors who continued to bet on the dollar after such an episode gained an average 17% over the next six months.
Slipping Away
Cedi’s rare 7-month losing streak against dollar has led to more declines
Ghana’s inflation accelerated at 40% in October and the government has yet to reach a bailout deal with the International Monetary Fund, prompting investors to shun the nation’s assets.
Lawmakers in the West African nation Thursday are debating an opposition motion to remove Finance Minister Ken Ofori-Atta over the economic crisis.
Source: bloomberg.com
