Ghana’s cedi slumped to the world’s worst-performing currency to the dollar as wait-and-see investors continued to squeeze foreign capital into the West African country before its deal with the International Monetary Fund.

The currency of the world’s second-biggest cocoa producer depreciated 2% on Monday to 11.2625 per dollar, taking its losses this year to 45.1%, the most among 148 currencies tracked by Bloomberg.

The currency that derived its name from ‘sedie’, the local Akan language name for cowrie shell, switched position with the Sri Lankan rupee, which is now the second worst performer with a 44.7% drop to the greenback this year.

Ghana started engaging with the IMF in July 2022 but only began formal negotiations for an extended credit facility program with the lender last month.

The country is hoping to receive up to $3 billion in loans over three years under the arrangement to spur its finances and support the balance of payments.

Ghana reversed course to seek IMF help after homegrown policies, including cutting 2022 discretionary expenditure by up to 30%, failed to stem a selloff in its international bonds.

The premium investors demand over US Treasuries to hold Ghana debt has widened to 2,669 basis points.