According to Bloomberg, the Ghana Cedi reportedly posted the world’s biggest gain against the US dollar as Ghana starts reorganising local debt.
Amidst optimism, the Ghana cedi took the title of the world’s best performer against the dollar last week and it is moving closer to unblocking an International Monetary Fund bailout.
According to the report, “The cedi has recovered 10% in the past five days, as it is the biggest advance amongst 150 currencies, which is a turnaround for an exchange rate that had lost half of its value this year and occupied the bottom slot in the charts”.
This breakthrough came as Ghana put its local-currency sovereign bonds in what was described as “default-like process” by Fitch Ratings, which was needed to put Ghana’s debt on a sustainable path and secure a $3 billion IMF loan.
Charles Robertson, the Global Chief Economist at Renaissance Capital Ltd. in London said, “The currency was the cheapest in Africa, more than 30% undervalued versus its 25 year history last week, so some rebound after the huge fall recently is not that surprising”.