Ghana, one of West Africa’s largest economies, will hold formal talks with the International Monetary Fund (IMF) on a support package. Until now, Ghana, the continent’s second-biggest gold producer, had refused to seek IMF support to rescue an economy crippled by the pandemic, rampant inflation, and a depreciating currency, despite analysts warning it is close to a debt crisis. Hundreds took to the streets in Ghana’s capital Accra for two days this week to protest against spiralling inflation and other woes. Growth slowed to 3.3 percent year-on-year in the first quarter of 2022 and inflation hit a record of 27.6 percent in May. Ghana’s dollar-denominated sovereign bonds rallied sharply with issues up maturing in 2026 and 2027 jumping nearly five cents in the dollar to trade at their highest level since May. Central bank governor Ernest Addison said in May that Ghana faced an overall balance of payments deficit of $934.5m in the first quarter of 2022, compared with $429.9m in the same period last year. The central bank raised its main interest rate by 200 basis points to 19 percent last month, the second rise this year to buttress macroeconomic stability.
SOURCE: AL JAZEERA
More Stories
At the Coalface of the Green Revolution, but Earning Crumbs
Harris Stresses that U.S. Interests in African Nations Extends beyond Competing with China
Lesotho’s Lawmakers Debated a Motion to Claim Huge Swathes of Territory from South Africa
New HRW Head Weighs in on the UK’s Plan to Deport Asylum Seekers to Kigali
South Africans Spent at least 9.5 Hours a Day Online in 2022
Togo Could Move the Needle on Tropical Diseases
Making It Easier for Everyday Africans to Take Advantage of Previously Restricted Asset Classes
Pirates Disrupt the Gulf of Guinea’s Usually Peaceful Waters
Chad’s Parliament has Approved a Bill to Nationalise Oil Assets
Unilever Nigeria Announces Exit of Home Care and Skin Cleansing Markets by End of the Year
Joshua Baraka is Ugandan Music’s Next Big Thing
Design for Human Rights