Cedi To Depreciate 8.4% To The Dollar In 2024; Mid-Dollar Rate To Hover At GH¢13 Per Research

• The Ghana cedi is expected to lose about 8.4% of its value to the US dollar in the retail market
• The expected depreciation of the Ghana cedi will be far lower than the about 15.2% recorded in 2023
• Bloomberg also did not classify the cedi in the ‘Best Spot Returns’ nor ‘Worst Spot Returns’ category in 2023

According to IC Research, the Ghana cedi is expected to lose about 8.4% of its value to the US dollar in the retail market in 2024.

According to the same research, the mid-dollar rate to the cedi is GH¢13.10.

The expected depreciation of the cedi will be far lower than the about 15.2% recorded in 2023.

IC Research also expects improved fundamentals in 2024 due to expected multilateral inflows.

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This will partly offset election-related and external debt restructuring uncertainties.

Bloomberg also did not classify the cedi in the ‘Best Spot Returns’ or ‘Worst Spot Returns’ category in 2023.

It instead pegged the unit at ¢11.95 to the dollar on December 29, 2023, the last day of trading in 2023.

However, the forex bureaus sold the cedi at 12.18 to one US dollar.

Earlier forecasts for the end of 2023

Earlier, experts predicted more depreciation for the cedi. The Director of Operations at Dalex Finance, Joe Jackson, said the Ghana cedi was likely to fall steeper against the dollar by the close of 2023.

He projected that by the end of 2023, the dollar could sell for GH¢15.

According to him, the cedi resilience over the last three months was primarily due to the government’s delayed repayment of external debts.

Fitch Solutions, however, projects a lesser depreciation, forecasting that the local currency will end 2023 at GH¢12.40 to one US dollar.

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Bank of Ghana urges businesses to stop pricing in dollars

Meanwhile, YEN.com.gh reported that the Bank of Ghana warned the business community in Ghana against pricing and doing other related activities in dollars and other foreign currencies.

The central bank said transacting in foreign currency in Ghana without authorisation is against the law.

The BoG said in a statement that it is collaborating with law enforcement agencies to continue the clampdown on businesses flouting the law.

Fidelity Bank and First National Bank suspended from forex trading

In a separate story, YEN.com.gh reported that two of Ghana's top banks were sanctioned by the central bank for breaching rules on interbank forex trading rules.

Punitive sanctions have been taken against Fidelity Bank and First National Bank Ghana by the Bank of Ghana.

Their forex trading licences were revoked, and they would not be permitted to do any forex transactions for 30 days.

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Source: YEN.com.gh