Cedi-Dollar Depreciation: EIU Predicts Local Currency Will Lose About 22% Value In 2023

• UK-based Economist Intelligence Unit (EIU) has forecasted that the cedi will continue to depreciate against the US dollar
• EIU predicted that the local currency will lose about 22 per cent of its value to the American greenback
• The cedi has in recent weeks bounced back strongly against the dollar to become the best-performing currency

The United Kingdom-based Economist Intelligence Unit (EIU) has forecasted that the cedi will continue to lose its value against the United States dollar.

According to the EIU’s prediction, the local currency will depreciate 22% to the dollar in 2023.

EIU Projects That Ghanaian Cedi Will Be Ranked 3rd Weakest Performing Currency In 2023

This will see the cedi being ranked as the 3rd weakest performing currency in Africa, based on the EIU’s Africa Outlook 2023 Report.

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“Most African currencies have lost substantial value against the US dollar during 2022 and we expect exchange-rate weakness to continue into 2023, albeit to a lesser degree”.

The EIU also maintained that troubled states including Sudan and Zimbabwe will be among the weakest currencies in the world during 2023.

Ghana, Other Countries Will See Their Currencies Depreciate By More Than 10% Against The US Dollar

Countries including Ghana, Malawi, Sierra Leone, Ethiopia and Egypt will see their currencies depreciate by more than 10% against the US dollar.

The cedi has in recent weeks bounced back strongly against the dollar to become the best-performing currency.

For the greater part of the year, the cedi’s value dropped to more than 50% against the dollar culminating in it being tagged the worst-performing currency globally.

Cedi Depreciation: Finance Ministry ‘Celebrates’ Local Currency’s Recent Gains Against US Dollar

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Earlier, YEN.com.gh reported that the recent gains of the Ghanaian cedi against the US dollar generated exciting reactions from government officials. The ministry of finance is the latest of such to celebrate the strength of the cedi.

In a social media post, the ministry noted the recent wins by the local currency which has been endorsed by a Bloomberg report.

The Twitter post on the official handle of the finance ministry showed an extract from the Bloomberg article showing the gains.

Source: YEN.com.gh