The Ghana cedi is expected to end 2023 at ¢12.40 to one US dollar, Fitch Solutions has predicted.
This means the rate of depreciation will be far lower than the 38% recorded last year.
The research and market information firm’s argument is based on the premise that Ghana will secure an International Monetary Fund-support programme by May 2023 that will go a long way to cushion the cedi against foreign exchange pressures.
It added that "while short-term exchange rate volatility will persist, we believe that the cedi will stabilise once a formal creditors' committee is formed and the IMF executive board approves Ghana's programme".
The cedi has so far depreciated by about 14% to the US dollar in the retail market, selling at about ¢12. It started the year at about ¢11.30 to a dollar.
However, it has lost about 21% in value to the American greenback on the interbank market, going for about ¢10.95. It begun the year 2023 at ¢8.57 to one US dollar.
For the past two weeks, the local currency has posted mixed performance on the markets, although the Central Bank increased its intervention in the spot market. This is due to heightening demand for foreign exchange as a result of market uncertainties.
Last week, the cedi lost 1.03% week-on-week against the dollar, closing at a mid-rate of ¢12.10 to one US dollar$.
It also lost 1.34% against the pound and 0.96% against the euro.
Latest Stories
-
World Bank’s food price index eases; maize, wheat prices hit 3-year low
38 mins -
2020 polls all about pulling Ghana back from precipice of destruction, corruption – Naana Jane
42 mins -
Guru expresses interest in contesting SRC election at UG
49 mins -
Oil prices projected to average $84 in 2024 – World Bank
59 mins -
Meet 2 Ghanaian entrepreneurs on a mission to connect 1m African professionals to global companies by 2034
1 hour -
NCA approves Starlink’s satellite broadband application
2 hours -
Government orders FGR to revamp mining operations; assures workers of commitment to their welfare
2 hours -
Arne Slot philosophy could suit Liverpool – Van Dijk
2 hours -
EC replies Mahama: You also appointed someone who was tagged NDC
2 hours -
See colourful outdoor of Prof Naana Opoku-Agyemang as NDC’s running mate
2 hours -
Akufo-Addo commissions 15MWP Kaleo Solar Power Plant
3 hours -
GCB Bank PLC leads African financial integration, hosts ZICB delegation
3 hours -
Empowering Girls in ICT: FAWE Ghana advocates for gender equality in the Tech sector
4 hours -
Rangnick ‘contacted by Bayern Munich’ about manager job
4 hours -
Winneba Youth Choir celebrates 35th Anniversary with Aseda Concert sponsored by Fidelity Bank
4 hours