(Bloomberg) -- Ghana’s currency dropped past 10 to a dollar for the first time as investors await a financing deal with the International Monetary Fund.

The cedi has dropped more than 38% this year making it the worst performing currency after Sri Lanka’s rupee among 150 economies tracked by Bloomberg.

“Ghana’s assets are facing pressure and this is common across high-yield emerging markets,” said Yvette Babb, a Netherland’s based fixed-income portfolio manager at William Blair International “The move, however, has been particularly pronounced in Ghana.”

Investors have dumped the cedi and the nation’s bonds this year as concerns about the impact of a global slowdown in demand for commodities such as cocoa have risen. Those movements fed an inflationary surge and pushed Ghana to begin talks with the IMF in July over an assistance package of as much as $3 billion.   

The yield on Ghana’s tranche of notes due 2026 rose 49 basis points to trade at 25%, a record, by 9:43 a.m. in Accra.

“We obviously had supporting comments from the IMF MD over the weekend, however technicals remain weak in Ghanaian credit and local currency,” Babb said. “There is no marginal bid for Ghanaian bonds with the street showing a lack of appetite for paper, so when the market sells off, the moves in Ghana’s credit are exacerbated”

The West African nation’s central bank earlier this month increased its benchmark interest rate by the biggest margin on record to 22% to slow the decline. A depreciating currency will add to the import bill of a country that purchases most of its fuel from abroad and has been struggling with inflation at the highest levels since 2003.

Still yet one cedi is about 42naira

Still better than naira

Cry cry Nigeria will still wail

Yet,
Bottom candidate belong to Sri Lanka at Roll call number 150.
Your beloved Ghana sat, a step above and that is Roll call number 149.
While, the country, called Nigeria that you have disregard for sat above Ghana and Sri Lank according to Bloomberg data.
Think about it.

fman:
Still yet one cedi is about 42naira

Buhari disvalue naira 3times

Nigerians are unpatriotic.

Some are even praying for something bad to happen to the country.

This is coming on the heels of their previous " re-denomination" where 2 zeros was struck off the erst-while Cedi.

So Technically, the cedi is now 1000 to the dollar

matify83:
This is coming on the heels of their previous " re-denomination" where 2 zeros was struck off the erst-while Cedi.

So Technically, the cedi is now 1000 to the dollar

yeah

fourboys:
Still better than naira

Says who?

fourboys:
Still better than naira

Ghana removed several zeros from their currency in a redenomination in 2006 or thereabout. Their currency has always been weaker than the Naira.

Ghana urgently needs to puts its finances in order. However, financial disarray occurres around an election year when the incumbent becomes fiscally reckless and splashes money by greatly increasing salaries or by any other means to win elections.

Nigeria is getting into similar acts as well. OBJ was largely indifferent-_he would simply rig the election. He wasn't at the mercy of interest groups or the electorate. Damn their votes.

However, GEJ was the first president to bribe the voters. He increased the minimum wage from ₦5,500 to ₦18,000 in 2011 as a sop to the militant NLC who smelt blood with electiobs so near.

This was reckless but the adverse effects would only become clear when the price of oil collapsed in 2015.

Buhari today has refused to increase the price of petrol despite the enormous pressure the subsidy is having on the country's budget and foreign reserves. The pressure on the reserves is so great that spending on one's Naira debit card has been reduced to $20 a month! By the way, next year is an election year. Any petrol price increase has been shifted to July next year.