Ghana’s central bank sprung a surprise on Wednesday by raising its policy rate from 15 per cent to 16 per cent, stepping up its efforts to halt the decline of the cedi.
Central Bank Governor Henry Kofi Wampah noted risks to economic growth arising in part from tightened credit, but decided the weakening of the currency was the bigger threat. Continue reading »
The yen shock has sent shudders around Japan’s Asian exporter rivals, not least Thailand.
The baht has soared spreading consternation among exporters. But even in a country where exports are over 75 per cent of GDP, the picture isn’t as simple as it seems. First, currency isn’t the only determinant of export competitiveness in a world of complex trade flows. And second, there could be benefits to Thailand in the expected outflow of Japanese money seeking higher yields in emerging markets. Continue reading »