The Cedi & Shilling: Setting The Standard
Top emerging markets currencies this week, are the Ghanaian Cedi and the Kenyan Shilling. Ghana’s cedi is officially the world’s best-performing currency against the dollar this year, extending its gains after the country sold sub-Saharan Africa’s longest ever Eurobond – 40 years – as part of a $3 billion deal that was five times oversubscribed | The 40-year bonds are priced at 8.9%, making it the highest-yielding sovereign bond so far this year as investors hunt for returns | GHS is now up close to 5% this year, a remarkable turnaround from last year when it weakened 13% against the dollar. The Kenyan shilling remains well supported ahead of a meeting in Washington between President Trump and President Kenyatta over a potential trade agreement. The two are expected to announce details of America’s first free-trade agreement with a sub-Saharan African nation. All emerging markets currencies were created equal. But some are more equal than others. Clearly!
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