Afreximbank to rescue Ghana from Forex Challenge

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• Farmer 10 years ago

  We are presented with another wizard to cure the ever more ailing situation on a daily basis. All I can say is, show us what it does to the damaged forex markets.
  
  Swaps is one of the magic words lately. However, they onl ...
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  We are presented with another wizard to cure the ever more ailing situation on a daily basis. All I can say is, show us what it does to the damaged forex markets.
  
  Swaps is one of the magic words lately. However, they only work if big national banks trust the Cedi. They are short term instruments to smooth things out. If you abuse them you end up like Greece.

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• Plasma Kote 10 years ago

  Nice group photograph.
  
  Good Talk.

  Nice group photograph.
  
  Good Talk.

  reply
• Smart Alec 10 years ago

  Greece didn't use FX Swaps, they used Cross Currency Swaps. They are 2 different instruments.
  
  Please get it right. They aren't short term. They can be structured for as short as overnight and for as long as 10 years.

  Greece didn't use FX Swaps, they used Cross Currency Swaps. They are 2 different instruments.
  
  Please get it right. They aren't short term. They can be structured for as short as overnight and for as long as 10 years.

  reply
• Farmer 10 years ago

  Looking at the BoG playing with SWAPs it's all the same given the close link between govt financing and the central bank. Think about a 2 yr FX SWAP USD / Ghc. Any idea about the effective cost of such an instrument? And who ...
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  Looking at the BoG playing with SWAPs it's all the same given the close link between govt financing and the central bank. Think about a 2 yr FX SWAP USD / Ghc. Any idea about the effective cost of such an instrument? And who would want the Cedis anyway? Since when is the Cedi a freely convertible currency?
  
  I was pointing to Greece only to show that even with the EURO behind it the voodoo didn't work out. You borrow, you have to pay. You borrow in a useless currency you have to pay a lot. Right?
  
  Thanks for your informed comment anyway. Appreciated.

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• Tsatsu 10 years ago

  What interest rate are all these loans based on, please don't tell me it's free lunch. Ghanaianso are funny, the demonstrate for more and more money and find out that the money is worthless, because the cedi is falling faste ...
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  What interest rate are all these loans based on, please don't tell me it's free lunch. Ghanaianso are funny, the demonstrate for more and more money and find out that the money is worthless, because the cedi is falling faster since t he government has to borrow to pay, so now the new raise cannot afford the 4x4, so they go on another demo to get more money, The cycle continues for the idiots.

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• mr amin 10 years ago

  The value of the cedi os what matters to us.

  The value of the cedi os what matters to us.

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• David 10 years ago

  How much was voted to help with our import? You see,they are quiet on that one because they will vote billions of dollars for that to help us import more so that local industries will die, and create Ghana as a bation of for ...
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  How much was voted to help with our import? You see,they are quiet on that one because they will vote billions of dollars for that to help us import more so that local industries will die, and create Ghana as a bation of foreign products lovers

  reply
• Kwame 10 years ago

  If we didn't get good person e country ll be die

  If we didn't get good person e country ll be die

  reply