Ghana Needs $1 -2 Billion In The Next Few Weeks Or Else We Should Expect An Economic Hemorrhage

Until Ghana has major dollar inflows of at least $1-2bn in the next few weeks, the cedi will, unfortunately, continue to hemorrhage against the dollar and other currencies.

The pressure for dollars is driven by both genuine needs, and perhaps, some speculative activities.

Speculation/gambling on the exchange rate is also an unintended consequence of an open market economy so let’s not make it look like it is necessarily evil herd mentally within financial markets is a well-known phenomenon.

Fundamentally, however, we took our eye off the ball by getting fixated on “junk” Eurobonds to solve some of our yearly forex needs. The money didn’t come this year because we were shut out of the market.

Even our regular “junk fixers” don’t seem to trust our ability to repay the loans this time until the IMF steps in to help us control our often wasteful spending. It’s a long road ahead for Ghana’s economic cagey bout of survival in a world market where every country is enforcing tangible pedagogical aids in sustaining the already fallen economies.

source: newshubghana