ACCRA, Aug 4 (AFP): Ghana has requested a bailout from the International Monetary Fund (IMF) to stem a huge slump in its currency, Finance Minister Seth Terkper said Monday.
Once a shining example of economic growth in Africa, Ghana is struggling with high inflation and its currency, the cedi, has slumped 40 per cent against the dollar this year.
"The ultimate objective is to stabilise the cedi in order that domestic prices will be brought under control," Terkper told local Joy FM radio.
Ghana has become the second country in sub-Saharan Africa to request help from the IMF this year after Zambia turned to the Washington-based body in June.
Despite large oil deposits and a wealth of raw materials such as gold and cocoa, growth has been hit by government overspending and inflation is now running at 15 per cent.
Capital Economics said Accra's budget deficit has widened to over 10 per cent of economic output because of a sharp rise on current expenditure such as public sector wages and subsidies.
The current account deficit has ballooned and now stands at over 12 per cent of gross domestic product (GDP), despite the ramping up of Ghana's oil exports over the past years.
"This in turn has led to an increase in public sector debt levels," said Capital Economics, compounded by "recent allegations that the Bank of Ghana is attempting to finance the deficit by printing money".
Ghana seeks IMF bailout for ailing currency
FE Team | Published: August 05, 2014 00:00:00 | Updated: November 30, 2026 06:01:00
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