Ghana’s cedi, the world’s second-worst performing currency this year, is heading for more pain after the country missed a self-imposed deadline to restructure its bilateral debt and move closer to tapping foreign aid.
Finance Minister Ken Ofori-Atta wanted to reach a restructuring agreement with bilateral creditors by the end of February to help qualify for a $3 billion International Monetary Fund program.
So far, Ghana has only partially completed the domestic-debt part of the exchange program.
The cedi has slumped 21% against the dollar in 2023, the worst performer among more than 100 currencies tracked by Bloomberg after the Lebanese pound.
Still, the missed deadline doesn’t automatically derail the talks.
Rather, it highlights the difficulties Ghana faces as it tries to reduce its debt load and contend with critics ranging from international bondholders to local trade unions.

“For the foreseeable future the cedi will continue to be volatile until we are able to make substantial progress on the external debt restructuring front,” Kweku Arkoh-Koomson, an economist at Databank Group, said by phone.
“The IMF deal is what will cause a clear stability in the cedi.”
Ghana is trying to restructure most of its public debt, estimated at ¢576 billion ($45 billion) at the end of November.
Local bondholders have been asked to voluntarily exchange ¢130 billion of debt for new bonds that will pay between 8.35% and 15% interest, compared with an average of 19% on old bonds.
Ghana stands to ask external creditors to write off as much as 50% of the debt it owes them — far higher than the 30% the government initially considered, S&P Global Ratings said in a report Tuesday.
“Uncertainty on when the rest of the restructuring will be completed” is influencing cedi volatility, said Courage Boti, an economist at Accra-based GCB Capital Ltd.
“To the extent that those things are hanging in the balance now — in that timelines are not very certain — the volatility of the cedi will continue.”
To date, local investors have exchanged ¢87.8 billion, or 67.5% of bonds under restructuring, for new securities, against an overall target of 80%.
The country will have to reorganize obligations owed to local pension funds to complete the domestic exchange, a move that’s running into criticism from trade unions.
The government aims to start “substantive” discussions with international bondholders and their advisers in the coming weeks, Ofori-Atta said last month, offering eurobond holders some losses while seeking to reschedule payments on bilateral obligations.
Latest Stories
- Vice President Bawumia has never held British or any other citizenship – Gideon Boako
28 mins - Life lounge with Edem Knight-Tay: Only because she is a woman
36 mins - I’ve been forced out over Partygate report – Boris Johnson
4 hours - 2023 AFCONQ: Chris Hughton replaces injured Alexander Djiku with Kasim Adams
4 hours - Media Coalition Against Galamsey frustrated at non-prosecution of Akonta Mining directors
5 hours - ISSER recommends adoption of electric vehicles to achieve a low-carbon transport sector
5 hours - Prof Frimpong Boateng is a role model for fighting ‘galamsey’, follow his examples – German Ambassador urges Ghanaians
6 hours - Special Prosecutor is guest on Newsfile on Saturday, June 10
6 hours - Unemployment in Ghana is highest among female youth – ISSER report reveals alarming disparities
7 hours - GrEEn project plants 2,000 trees in Ashanti and Western regions
7 hours - Asantehene leads tree planting in Kumasi as part of Green Ghana Day initiative
8 hours - Johnnie Walker Black Label and Red Label ‘step out of boxes’
8 hours - Sankalp West Africa Summit 2023 on entrepreneurship slated for June 12
8 hours - French Open 2023: Novak Djokovic through to final after Carlos Alcaraz injury
9 hours - Man Utd owners spoke to PSG chairman about Sheikh Jassim bin Hamad Al Thani’s bid
9 hours