• Login
NORVANREPORTS.COM |  Business News, Insurance, Taxation, Oil & Gas, Maritime News, Ghana, Africa, World
  • Home
  • News
    • General
    • Political
  • Economy
  • Business
    • Agribusiness
    • Aviation
    • Banking & Finance
    • Energy
    • Insurance
    • Manufacturing
    • Markets
    • Maritime
    • Real Estate
    • Tourism
    • Transport
  • Technology
    • Telecom
    • Cyber-security
    • Cryptocurrency
    • Tech-guide
    • Social Media
  • Features
    • Interviews
    • Opinions
  • Reports
    • Banking/Finance
    • Insurance
    • Budgets
    • GDP
    • Inflation
    • Central Bank
    • Sec/Gse
  • Lifestyle
    • Sports
    • Entertainment
    • Travel
    • Environment
    • Weather
  • NRTV
    • Audio
    • Video
No Result
View All Result
No Result
View All Result
NORVANREPORTS.COM |  Business News, Insurance, Taxation, Oil & Gas, Maritime News, Ghana, Africa, World
No Result
View All Result
Home Business

Cedi to weaken by 30% against the greenback by end-2023

2 years ago
in Business, Economy, Features, highlights, Home, home-news, latest News, Markets
1 min read
0 0
0
82
VIEWS
Share on FacebookShare on TwitterShare on Linkedin

Cedi to weaken by 30% against the greenback by end-2023

The Ghanaian cedi is predicted to depreciate by 30% against the US dollar in 2023, according to a report by the Economist Intelligence Unit (EIU). This projection is slightly lower than the 44% depreciation that the local currency experienced in 2022. The UK-based firm highlighted that increased demand for hard currency due to high import prices, inflation, capital flight, rising profit repatriation by multinationals, and weak investor sentiment in the face of the ongoing debt crisis will drive the cedi’s depreciation.

The report further stated that the cedi’s fall would be slowed down comparatively in the second half of the year by the expected approval of an International Monetary Fund program and sustained fiscal and monetary tightening. However, the EIU expects further gradual depreciation in 2024-2027, to reach ¢14.70 to the dollar by the end of 2027. Although the pace of the depreciation is expected to be slower than in 2022-2023 as debt-restructuring uncertainties abate.

The sustained depreciation of the Ghanaian cedi reflects the country’s structural current-account deficit and higher inflation than its trading partners, according to the report. Furthermore, reserves are predicted to average 3.3 months of import cover over 2023-2027, just above the internationally regarded prudential minimum of three months.

As of May 2, 2023, the cedi began trading at ¢12.10 pesewas to the dollar on the forex or retail market. The currency is also selling at ¢14.98 to the pound and ¢3.00 to the euro. The report’s authors emphasized that the sustained depreciation of the cedi will have a significant impact on Ghana’s economy, including increased import costs, rising inflation, and higher external debt burdens.

The EIU’s predictions come at a time when Ghana is grappling with a mounting debt crisis. The country’s debt-to-GDP ratio has surged to over 80%, up from 70% in 2022. Ghana’s government has already announced austerity measures to reduce spending and boost revenue to address the debt crisis. Additionally, the government is seeking to restructure its debt by extending maturities and reducing interest rates to make it more manageable.

The IMF program approval expected in mid-2023 will also help Ghana address the debt crisis. The program will provide financial assistance and policy support to the country. The program’s approval will increase investor confidence in Ghana’s economy and help the country reduce its reliance on foreign borrowing, which has been a significant driver of the cedi’s depreciation.

RelatedPosts

Parliament Adjourns Sine Die After Intense Legislative Session Marked by Reform Calls and Tributes

GACL Terminates Evatex Revenue Assurance Contract Amid OSP Probe

Cyber Security Authority Flags Rising Mobile Data Scam, Cautions Public

The EIU’s predictions of the cedi’s depreciation highlight the challenges facing Ghana’s economy. The country needs to address its structural current-account deficit and high inflation to improve its economic performance. The IMF program approval, together with sustained fiscal and monetary tightening, will help address these challenges, reduce the cedi’s fall, and boost investor confidence in the country’s economy. Nonetheless, the sustained depreciation of the cedi will have significant implications for Ghana’s economic outlook, and the government must continue to implement policies that address the country’s debt crisis and improve its economic fundamentals.

Tags: cediCedi to weaken by 30% against the greenback by end-2023dollarEIU
No Result
View All Result

Highlights

Gov’t Reopens Talks With PayPal to Restore Full Service Access in Ghana

Financial Sector Assets up 34.6% in 2024 to GHS 525.59 Billion

Banking Sector Soundness Remains Robust in 2024 Amid Strong Profitability, Adequate Capital Buffers

Sha’Carri Richardson Withdraws from US Trials Following Arrest

From Singuluma to El Kaabi: Can CHAN 2024 Unleash the Next Hat-trick Hero?

Ghana to Welcome King’s Baton Relay on August 8 Ahead of 2026 Commonwealth Games

Trending

Features

Parliament Adjourns Sine Die After Intense Legislative Session Marked by Reform Calls and Tributes

August 2, 2025

Parliament Adjourns Sine Die After Intense Legislative Session Marked by Reform Calls and Tributes Parliament has adjourned...

GACL Terminates Evatex Revenue Assurance Contract Amid OSP Probe

August 2, 2025

Cyber Security Authority Flags Rising Mobile Data Scam, Cautions Public

August 2, 2025

Gov’t Reopens Talks With PayPal to Restore Full Service Access in Ghana

August 2, 2025
Bank of Ghana

Financial Sector Assets up 34.6% in 2024 to GHS 525.59 Billion

August 2, 2025

Who we are?

NORVANREPORTS.COM |  Business News, Insurance, Taxation, Oil & Gas, Maritime News, Ghana, Africa, World

NorvanReports is a unique data, business, and financial portal aimed at providing accurate, impartial reporting of business news on Ghana, Africa, and around the world from a truly independent reporting and analysis point of view.

© 2020 Norvanreports – credible news platform.
L: Hse #4 3rd Okle Link, Baatsonaa – Accra-Ghana T:+233-(0)26 451 1013 E: news@norvanreports.com info@norvanreports.com
All rights reserved we display professionalism at all stages of publications

No Result
View All Result
  • Home
  • Business
    • Agribusiness
    • Aviation
    • Energy
    • Insurance
    • Manufacturing
    • Real Estate
    • Maritime
    • Tourism
    • Transport
    • Banking & Finance
    • Trade
    • Markets
  • Economy
  • Reports
  • Technology
    • Cryptocurrency
    • Cyber-security
    • Social Media
    • Tech-guide
    • Telecom
  • Features
    • Interviews
    • Opinions
  • Lifestyle
    • Entertainment
    • Sports
    • Travel
    • Environment
    • Weather
  • NRTV
    • Audio
    • Video

Welcome Back!

Login to your account below

Forgotten Password?

Create New Account!

Fill the forms bellow to register

All fields are required. Log In

Retrieve your password

Please enter your username or email address to reset your password.

Log In
NORVANREPORTS.COM | Business News, Insurance, Taxation, Oil & Gas, Maritime News, Ghana, Africa, World
This website uses cookies. By continuing to use this website you are giving consent to cookies being used. Visit our Privacy and Cookie Policy.
We use cookies to ensure that we give you the best experience on our website. If you continue to use this site we will assume that you are happy with it.