The Ghana cedi could record a single-digit depreciation against the US dollar in 2024, The Economist Intelligence Unit has disclosed in its 2024 Africa Outlook Report.

According to the UK-based firm, the cedi will benefit from the International Monetray Fund Programme.

It stated that only five African countries (Egypt, Sudan, Ethiopia, Angola, and Zimbabwe) will experience double-digit depreciation of their currencies in 2024.

“The Central and West African countries that make up the CFA franc zone will experience currency appreciation in 2024. The currencies of most other African countries will depreciate next year, with five experiencing double-digit depreciation: Egypt, Sudan, Ethiopia, Angola and Zimbabwe”.

“We forecast currency depreciation against the US dollar across much of Africa in 2024, although adjustments are expected to be less severe than those recorded in 2023”, it added.

Meanwhile, the cedi is selling at ¢12.18 in the retail market as pressure continues to mount.

Demand by corporates and importers ahead of the Christmas festivity is still high. However, this could reduce as the first tranche of the Cocoa Syndication Loan may come in at any time soon, following approval by Parliament.

GCB Capital had earlier said the outlook of the cedi hinges on the timing of the anticipated foreign exchange inflows from the cocoa syndication loan and the second tranche of the International Monetary Fund.

According to the investment bank, this is crucial to the stability of the cedi for the rest of the year.

For the remainder of quarter 4, 2023, many analysts and market watchers believe the inflows of the cocoa syndication loan and the second tranche of the International Monetary Fund bailout package will influence the performance of the cedi.