The Ghana cedi is expected to lose about 8.4% in value to the US dollar in the retail market in 2024, IC Research has stated.

It foresees the mid-dollar rate to the cedi at ¢13.10.

The expected depreciation of the cedi will be far lower than the about 15.2% 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)”.

IC Research added that it expects improved fundamentals in 2024, as a result of expected multilateral inflows and appropriate monetary stance.

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 $600.0 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.

It rather pegged the unit at ¢11.95 to the American greenback 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.