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Ghana to Approach IMF To Halt Currency Slide

Talks to focus on reducing debt payments

Monday 8th September 2014

Ghana is due to approach the International Monetary Fund this week to discuss support for its beleaguered monetary system. Ghana’s cedi dropped has 37% year-on-year, raising inflation to 15.3% in July and causing the yield on Ghana’s medium-term bonds to shoot up. This high yield is proving too costly for Ghana’s Financial Ministry and they have now moved closer to asking for help.

Talks are expected to star this week with a focus on Ghana’s medium-term growth plans. Deputy Finance Minister Mona Quartey said that once the currency is stabilised a lot of the other issues (will) start to fall away. Lower revenue from Ghana’s export business is also placing strain on the economy.

Quartey’s plan is to move short-term debt to longer-term debt. This will lower the yield they will be required to pay. Support and financial aid from the IMF may be agreed upon in November of 2014.

To read our source article, click here.