Ghana’s Cedi Ends 8-Week Losing Streak on IMF Statement, Inflows

Ghana’s cedi rose and ended an eight-week losing streak as the International Monetary Fund said the West African nation’s budget program is on track and the government sees dollar inflows in the second half.

The cedi appreciated 6.9 percent this week, the first in nine weeks, according to data compiled by Bloomberg. It traded 4.4 percent stronger to 4.1 per dollar at 10.48 a.m. in the capital, Accra, the highest level in a week.

The budget deficit of the world’s second-biggest cocoa producer will be lower than originally planned this year, the IMF’s mission chief Joel Toujas-Bernate said in Accra on June 30. Ghana’s budget shortfall will be 7 percent of gross domestic product compared with a target of 7.5 percent of GDP, he said.

The currency will strengthen in the second-half because of a Eurobond sale and a syndicated loan for cocoa producers, Finance Minister Seth Terkper said on Thursday.

“The speculation aspect which was driving the cedi weaker is reducing following IMF comments that the budget deficit was on track,” Courage Kingsley Martey, an economist at Accra-based Databank Group Ltd., said by phone. “The expected inflows that the government sees in the second-half is also helping to ease pressure on the cedi.”