This unpleasant news confirms a publication of this paper earlier this month which indicated a possible 'haircut' of investors funds in government debt instruments.
The auction results as released by the Bank of Ghana indicate that government exceeded its target for the 13th week running. But, this comes with at a higher repayment cost. The sales were oversubscribed by 35% to the tune of GH¢2.287 billion.
Investors may be compelled to sell their cedi holdings, if the MPC committee decides to hold the policy rate at 22 percent.
The sales realized were about 39.70% more than its target of GH¢5.117 billion, largely used to refinance maturing debts.
The cedi is also expected to appreciate further in the wake of the first tranche of the annual cocoa syndication loan which would hit the accounts of the BoG next month.
One of the renowned analyst warned that, any of such move may result in Ghana not being able to go to the capital markets for many years to come.
The investor firm is also projecting a 30.1% fall in value of the cedi to the dollar in 2023. This means, the woes of the cedi will not get better anytime soon.
Already, the US$750 million loan from the African Export Import Bank (AFREXIMBANK) has hit the accounts of BoG and now waiting for the US$1.3 billion cocoa syndication loan.
The Regulatory Sandbox is an opportune tool for harnessing the potential of technology to develop an efficient and inclusive financial service industry without risking financial stability.
The president of the Ghana Union of Traders Association (GUTA) has called on the Bank of Ghana (BoG) to relax the laws on transacting business in dollars at the banks.