chart courtesy of Bloomberg Finance L.P.
|Ghanaian Cedi vs. U.S. Dollar|
- The Ghanaian government has failed to reign in the country's fiscal and current account deficit, and the Cedi (Ghanaian currency) is down about 20% Y-T-D.
- We don’t believe the measures taken to date will be sufficient to stem the weakness in the GHS performance relative to the dollar.
- According to Standard Bank, the forth coming bond auction is likely to see yields in excess of 26-28% from foreign investors – and the government is likely to accept such high rates.
Nile Capital Management
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