As Ghanese investors await a financing deal with the International Monetary Fund, the nation’s currency dropped past 10 to a dollar for the first time. The cedi has dropped more than 38% this year, making it the worst performing currency after Sri Lanka’s rupee.
Investors have dumped the cedi and the nation’s bonds this year as concerns about the impact of a global slowdown. These have fed an inflationary surge and pushed Ghana to begin talks with the IMF in July over an assistance package of as much as $3 billion.
Earlier this month, Ghana’s Central Bank increased its benchmark interest rate by the biggest margin on record to 22% to slow the decline. A depreciating currency will add to the import bill of a country that purchases most of its fuel from abroad and has been struggling with inflation at the highest levels since 2003.