If Ghana doesn’t get $1-2 billion in the next few weeks, the economy would likely start bleeding.

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.

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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.

None of our normal “junk fixers” are confident in our ability to repay the loans until the IMF steps in to help rein in our frivolous spending. There is still a long way to go before Ghana’s economy can stabilize in a global market where every government is enforcing concrete pedagogical aids in supporting the already collapsed economies.

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