In 2022, Ghana found itself in the midst of a severe economic crisis that forced the government to seek a $3 billion bailout from the International Monetary Fund (IMF).
While rising debt and fiscal mismanagement were major contributors, a critical yet often overlooked factor was the role of bond vigilantes-investors who lost confidence in Ghana's financial stability and dumped the country's bonds.
This selloff triggered a surge in borrowing costs, a rapid depreciation of the cedi, and ultimately, Ghana's financial distress.
Bank of Ghana Let's explore how these bond vigilantes influenced Ghana's economy, their role in the 2022 crisis, and the broader implications for fiscal policy and investor confidence.
