With its inflation rate reaching 40%, and its debt rating below investment grade. Ghana has the worst performing currencies in the world, and while the state is struggling to control the rapidly deteriorating situation, it is now asking bondholders to accept losses on their investments.

The Ghanaian government aims to start talks with investors before the end of November, and Ghana will most likely have to agree to implement tough measures to get its finances in order as part of any restructuring. But this is the price it will have to pay to complete the deal and bring it one step closer to getting the much-needed rescue package. The country has been in negotiations with the IMF since September on the implementation of a USD 3 billion program after being excluded from international debt markets.

But if the government proposes harsh restructuring measures but with a weak fiscal adjustment, this will be seen as an attempt to put the burden on creditors.

Although there are certain reasons behind Ghana's collapse, it is also a new warning from the world of emerging markets, whose economies are struggling to recover from the epidemic, or are facing pressure to make debt payments due to the strength of the US dollar.

The Ghanaian Sedi is down nearly 60 percent this year and is the worst-performing currency around the world. Other big losers include the Sri Lankan Rupee, the Argentine peso and the Turkish lira, all of which are facing balance of payments problems.

The decision to seek a devaluation of foreign bonds comes just weeks after Ghanaian President Nana Akufo-Addo announced that the bailout talks would not lead to losses for foreign debt holders.

Trying to reassure investors, Deputy Minister of Finance John Kumah noted that the government will not try to impose anything on them.