Ghana Now Investors’ Delight As Nigeria Struggles – Bloomberg

While the Central Bank of Nigeria works towards meeting investors’ expectations, her West African neighbour, Ghana was considered the top on foreign investors lists in 2020.

According to Bloomberg, investors are rushing to buy into Ghana’s $3 billion Eurobond as its currency, Cedi, is now the best-performing currency in the world.

Ghana was described as one with a slowing economy, creeping inflation, and declining currency in the fourth quarter of 2019 but took a positive leap just six weeks in the New Year.

Meanwhile, the Naira is clearly struggling to meet up with expectations.

Latest data from the CBN indicates that Nigerian’s foreign reserves’ dropped from $38.53bn on January 2, 2020, to $37.23bn on February 13, 2020.

To make the Naira attractive to investors, the CBN recently launched a five-year long-dated FX Future to encourage long-term planning.

With this new contract, the CBN plans to attract more foreign inflows, shore up dwindling dollar reserves and reduce rising pressure on the naira.

 At a time when experts have called for the devaluation of the naira, the CBN has basically bought time for the currency in the face of mounting pressure on its stability to the dollar.