Ghana’s balance of payments further deteriorated to a deficit of $3.64 billion in December from a $3.4 billion deficit the previous quarter, central bank data showed on Saturday.
The West African country is in the grip of an economic crisis, with consumer inflation reaching 54.1% last month. The cedi currency has depreciated by around 50% per year, and government debt interest payments have risen to between 70% and 100% of GDP.
Recent balance of payments woes have been largely driven by a sharp reversal in capital flows, with Ghana’s capital account deficit having worsened to $2.18 billion in December from $1.64 billion in September.
Ghana had a capital account surplus of more than $3.3 billion at the same time last year.
Late last year, Ghana obtained a $3 billion staff level bailout from the International Monetary Fund, but it needs to restructure its debts to get executive board approval.
The country has requested to restructure its bilateral debt under the Common Framework platform supported by the Group of 20 major economies, and is currently negotiating terms for a domestic debt exchange programme with local bond holders.
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