Cedi projected to lose 8.4% in value to the dollar this year
The local currency is forecasted to lose about 8.4% in value to its anchor currency (dollar) in the retail market in 2024.
According to IC Research, it foresees the mid-dollar rate to the cedi at GHS 13.10.
The expected depreciation of the cedi will be far lower than the 15% recorded last year.
“In full year 2024, we foresee the mid-US dollar Ghana cedi rate at ¢13.1/US dollar (-8.4% annual loss),” noted IC Research adding that, it expects improved economic fundamentals in 2024, as a result of expected multilateral inflows and appropriate monetary policy stance by the BoG.
This will partly offset election-related and external debt restructuring uncertainties.
The cedi enjoyed stability in December 2023, helped by the Bank of Ghana’s monetary squeeze, the US dollar weakness occasioned by the Federal Reserve’s dovish outlook, and the $600 million from the COCOBOD syndicated loan.
“In line with our full year 2023 forecast, the mid-US dollar/Ghana cedi closed at ¢12.0/US dollar on the retail market, representing a 0.3% month-on-month appreciation (-15.6% annual loss)”, IC Research pointed out.
Bloomberg neither classified the local currency in the ‘Best Spot Returns’ nor ‘Worst Spot Returns’ category in 2023.
Bloomberg rather pegged the cedi at GHS 11.95 to the greenback on December 29, 2023, the last day of trading in 2023.
