Since the beginning of the year, the Ghanaian cedi has lost 72% of its value relative to the US dollar.
The Cedi has continued to decline despite Ghana’s central bank boosting interest rates to a record high of 24. 5% in an effort to lower inflation and strengthen the currency.
Ghana is struggling with debt, a weak currency, 20-year-high inflation, and rising inequality. As a result, the government of Ghana was forced to request financial aid from the IMF (IMF).
If the current evaluation determines that Ghana’s debt levels are unsustainable, the government will need to take action to restructure its debt in order for it to qualify for IMF assistance.