Ghana’s markets rebound, but SA’s take a tumble

Ghana’s markets have rallied in response to the news that the government has turned to the IMF for support, with the currency strengthening and the yields of dollar-denominated bonds falling this month. Elsewhere though, currencies have sold off, with the South African rand particularly hard hit due to the country’s large current account deficit. We would not be surprised to see the rand fall further and have nudged down our forecast over the next few years.