According to Bloomberg, as Ghana begins restructuring domestic debt, the Ghana Cedi posted the largest gain against the U.S. Dollar last week.
Ghana cedi outperformed all other currencies last week against the dollar on hopes that the nation was getting closer to receiving a bailout from the International Monetary Fund. “Among the roughly 150 currencies tracked by Bloomberg, the cedi has increased by 10% in the last five days.
Gains occurred even as holders of Ghana’s dollar-denominated sovereign bonds braced for capital losses and the country’s local-currency sovereign bonds entered what Fitch Ratings called a “default-like process.”
Restructuring is required to secure a $3 billion loan and put Ghana’s debt on a manageable course.