The cedi will continue to lose value versus the dollar and other currencies unless Ghana receives substantial dollar inflows of at least $1-2bn in the coming weeks.
Both pressing necessities and possible speculative activity contribute to the clamor for funds.
To avoid making the herd mentality so prevalent in financial markets seem inherently bad, let’s remember that speculation/gambling on the exchange rate is also an unintended consequence of an open market economy.
However, we lost sight of the forest for the trees when we began to rely excessively on “junk” Eurobonds to meet some of our annual foreign-exchange requirements. We were unable to raise funds this year because we were unable to access the market.