Ghana Cedi Predicted To Have Stable End To 2024: “Depreciation Pace To Slow”
- The Ghana cedi is only expected to depreciate modestly between now and the December elections
- The cedi is currently trading at GH¢15.63 to the dollar and is considered the fifth-worst-performing currency of the year by Bloomberg
- The President of the Importers and Exporters Association expressed satisfaction with this news in comments to YEN.com.gh
Analysts expect the Ghana cedi to weaken modestly between now and the December elections.
This has followed following steep falls earlier in the year, which saw the cedi depreciate by over 19.6 per cent against the dollar as of July 2024.
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Bloomberg reported that Ghana may end the year at GH¢15.97 per dollar, according to Oyinkansola Samuel, an analyst at FirstRand Ltd.’s RMB Nigeria unit.
The cedi is currently trading at GH¢15.63 to a dollar and is considered the fifth-worst-performing currency of the year.
“We expect the depreciation pace to slow going into the end of the year as multilateral disbursements and ample reserve accumulation improve market sentiments," Samuel said.
Samir Gadio, the head of Africa strategy at Standard Chartered Bank Plc, also said foreign exchange demand-supply mismatches have eased.
He said cedi depreciation could slow because of IMF disbursement and an upcoming cocoa financing facility.
The cedi has been hurt by this year’s poor cocoa crop, which provides Ghana with a vital source of foreign exchange earnings.
There have also been investor concerns during prolonged debt-restructuring talks amid the default that led to Ghana seeking IMF support.
The President of the Importers and Exporters Association, Samson Asaki Awingobit, expressed satisfaction with this news.
"The business community really want to see better stability in our cedi," Awingobit told YEN.com.gh.
While he welcomed the stability, he expressed hope the credit could appreciate to GH¢13 to the dollar.
IMF support to help cedi
The forex inflows from the IMF are expected to unlock funds for Ghana from other multi-lateral lenders.
Ghana has received $1.6 billion so far under the $3 billion bailout it agreed with IMF.
The World Bank also approved $250 million for a five-year Ghana Financial Stability Project.
The World Bank has also earmarked $900 million in so-called resilient recovery development policy financing for Ghana, of which $300 million has already been released.
Mahama to renegotiate IMF deal
YEN.com.gh reported that the National Democratic Congress flagbearer John Mahama plans to renegotiate Ghana’s International Monetary Fund bailout.
Mahama told Reuters the IMF would not be against a renegotiation based on his experience under a previous programme.
Proofread by Berlinda Entsie, journalist and copy editor at YEN.com.gh
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Source: YEN.com.gh
