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Fitch Solutions has made a prediction that the Ghana cedi will end 2023 at a rate of ¢12.40 to one US dollar. This rate of depreciation will be significantly lower than the 38% recorded in the previous year. Fitch Solutions’ argument is that if Ghana secures an International Monetary Fund-support programme by May 2023, it will help protect the cedi against foreign exchange pressures. Although short-term exchange rate volatility will persist, the cedi is expected to stabilize once a formal creditors’ committee is formed and the IMF executive board approves Ghana’s programme.
Currently, the cedi has depreciated by approximately 14% to the US dollar in the retail market, selling at about ¢12, and about 21% in value to the American greenback on the interbank forex market, going for about ¢10.95. Due to market uncertainty, the Central Bank has increased its intervention in the spot market to counter the cedi’s mixed performance on the markets.
Last week, the cedi lost 1.03% week-on-week against the dollar, closing at a mid-rate of ¢12.10 to one of the US dollars. It also lost 1.34% against the pound and 0.96% against the euro.
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Source: Omanghana.com
