The Cedi’s performance in the last year has been nothing short of a pendulum swing. Its aggressive shift from best-performing currency globally to worst-performing in quick successions demonstrated just how volatile the country’s economy had become.
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But the planned initiatives of the Ghanaian administration with the new IMF loan are expected to bring about the much-needed economic stability that has eluded the country in recent months. The Ghanaian currency is prime to end the month with an estimated 5.3% advance, the 4th largest of the 150 currencies tracked by American media agency, Bloomberg.
Furthermore, it seems probable that the aid provided by the IMF would assist the country in strengthening its finances and progressing toward regaining access to international markets.
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The International Monetary Fund’s executive board approved a $3 billion, three-year loan package for Ghana on May 17. This allowed for an immediate payout of about $600 million and may have offered a way out of the country’s worst economic crisis in a generation.
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Shortly after, Ghana relayed its ambitious plan to offset $10 billion of its entire external debt by 2026. This $600 million immediate reimbursement is following Ghana’s persistent pursuit of the $3 billion loan from the IMF since 2022, to which the IMF had been hesitant owing to their uncertainty of Ghana’s ability to restructure its debt.
Ghana’s attempt to recover economically from one of the biggest economic crises the country has seen in decades was hampered by this back-and-forth between the West African gold coast and the international lender. The Cedi, the currency of Ghana, had the poorest performance of any currency in the world, and inflation there reached its highest levels seen in over 2 decades.
While the public objected, arguing that the country doesn’t need any more debt, the country’s leadership was adamant that the $ 3 billion IMF loan would assist alleviate this situation during this turbulent time.
