IMF bailout programme: Cedi, Eurobonds extend gains

Ghana’s Eurobonds and the country’s local currency – the cedi – has started extending gains, as the nation expects the International Monetary Fund Board approval for a $3 billion balance of payment support this week.

According to Bloomberg, Ghana’s currency strengthened by 5.3% on May 15, 2023, the most since April 3, 2023.

Analysts had already predicted a strong currency once Ghana gets approval for the IMF-support programme.

The cedi had since March 2023 strengthened in value against the US dollar, after depreciating by about 22% to the American greenback in the first two months of 2023.

Fitch Solutions also projected that the Ghana cedi is expected to end 2023 at ¢12.40 to one US dollar. But presently, the dollar is going for about ¢11.90 on the retail market.

Meanwhile, international bonds of various maturities also rallied, accounting for eight of the top 10 performers in emerging markets today, May 15, 2023.

The 2035 dollar note rose 1.3 cents to 39 cents.

The government in December 2023 suspended payments on its external obligations to compliment debt restructuring talks with its creditors.