Ghana’s cedi will strengthen in the last six months of the year because of inflows from the sale of a Eurobond and a syndicated loan for cocoa producers, Finance Minister Seth Terkper said.
The currency’s 26 percent decline against the dollar in the first half is seasonal and was made worse by the greenback’s strength, Terkper told business executives at a conference in the capital, Accra. The cedi is the worst performer this year of the 24 African currencies tracked by Bloomberg.
Ghana’s government is on track to meet its budget-deficit target and the currency will improve in the second half of the year, the International Monetary Fund said on Tuesday. Ghana agreed to a loan of about $1 billion from the Washington-based lender this year to help support the currency and narrow the fiscal gap.
The government plans to sell about $1 billion of Eurobond later this year, the third in as many years, and the Cocoa Board, the industry regulator, is seeking a syndicated loan of $1.8 billion for next season.
The cedi gained 1.8 percent to 4.29 per dollar at 10:55 a.m. in Accra.