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IMF Demand at Root of Ghana's Cedi Slump, Deputy Leader Says

  • Central bank had to lift reserves to meet bailout requirements
  • Cedi slumped as much as 16% in 2019, before paring some losses
General Economy As IMF Says Ghana Needs More Revenue And Fewer Spend Cuts
Photographer: Nicholas Seun Adatsi/Bloomberg
Updated on

Ghana’s central bank was unable to support the weakening cedi because the country had to build reserves to meet the requirements of its bailout program with the International Monetary Fund, Vice President Mahamudu Bawumia said.

The currency of West Africa’s second-biggest economy collapsed as much as 16 percent against the dollar this year after offshore holders of domestic debt failed to roll back their maturing investments. The cedi pared its year-to-date losses to 7.6 percent by 8:46 a.m. on Thursday.