Ghana is hoping for financial aid from the International Monetary Fund (IMF) to help strengthen its currency after the cedi fell 40% against the US dollar, making it one of the world’s worst-performing currencies.

“Ghana, once seen as a shining example of economic strength in the region, is also struggling with high inflation,” says a BBC report.

The report recalls that the West African country last went to the IMF for help in 2009, when it secured a $600m three-year aid package.

“Despite being a major exporter of gold, oil and cocoa, Ghana is struggling with large current account and budget deficits,” says BBC.

The country’s finance minister had last week told the BBC that the country would fix its currency problems itself and only go to the IMF as a last resort.

“Many experts see the decision to go to the IMF as the first admission by the government that the economy is in bad shape,” says the report. “Commentators said the move would force the government to take stronger action to tackle rising deficits and inflation.”

Leading financial analyst Razia Khan of Standard Chartered Bank is quoted as saying: “An IMF programme is likely to give to investors that additional level of confidence that fiscal consolidation might be pursued more seriously. However, news of potential talks with the IMF is unlikely to be enough, on its own, to make a meaningful difference to the cedi just yet.”

seunlayi:
notwithstanding, they still enjoy a steady economy

seunlayi:
notwithstanding, they still enjoy a steady economy

postmann:
having the world's worst currency, applying to IMF for an economic bailout.....how does this transcend into a steady economy? This is the second time in 5 years the cointry is running to IMF. READ MAN, READ.

seunlayi:
notwithstanding, they still enjoy a steady economy

dcaliph:
The mistake ghana made is to think that following IMF scripts would lead to economic prosperity. They should have asked IBB.

iamord:


Seriously.. U have little idea or no idea on what is going on

Kemy11:
May. B we should loan madam Okonjo to them

dcaliph:

Do educate me.

iamord:


I don't have the strength to be typing over and over again..u can Check my post on www.nairaland.com/1966823/p-downgrades-ghana-cedi-junk

dcaliph:


You made good points and i agree with most of them. I still think that ghana taking IMF advises is one of the major problems. IMF agender is anti-Africa, they always encourage borrow, remove subsidy and they roll out deceiptive statistic. Thats what they did to Nigeria during IBB era.
Running to IMF again for help would not help. Ghana should solve the problem internally.

seunlayi:
notwithstanding, they still enjoy a steady economy

blizard44:
IMF finances is what I call the 'Devil's Own Loan'.

Ghana may never shake it off in decades to come.

dcaliph:


You made good points and i agree with most of them. I still think that ghana taking IMF advises is one of the major problems. IMF agender is anti-Africa, they always encourage borrow, remove subsidy and they roll out deceiptive statistic. Thats what they did to Nigeria during IBB era.
Running to IMF again for help would not help. Ghana should solve the problem internally.

ichidodo:
Ghana should save themselves the trouble and devalue their currency like Japan for instance...

iamord:


The problem is not the re domination ooo

iamord:


The problem is not the re domination ooo

seunlayi:
notwithstanding, they still enjoy a steady economy

egift:
1 Ghana Cedi = 52 Naira

badmrkt:
bros stick to politics and leave Economics for the wise ones...