Fitch Solutions has reiterated that the Ghana cedi will record a strong performance against the US dollar in 2023.
According to the UK based firm, this will come on the back of an expected boost in the country’s reserves as a result of $3 billion from the International Monetary Fund support programme and an improvement in the current account position.
The government of Ghana is optimistic of concluding its Debt Exchange Programme by the end of February 2023,
Speaking at a Sub-Saharan Africa Market Update, Senior Country Analyst, Mike Kruninger, said the cedi’s performance in 2023 will be very much different from last year.
“Disbursement of Special Drawing Rights will shore up Ghana’s foreign reserves in 2023 which will improve the Bank of Ghana’s ability to defend currency. Secondly, overall investor sentiments will improve as debt restructuring gets underway…the IMF programme gets exactly board approval and the government makes progress on fiscal consolidation in 2023 and will also provide some relief to the exchange rate”.
“And then the third reason for this is that, we hold a relatively positive view on Ghana’s current account dynamics in 2023”.
Fitch Solutions is predicting a narrow current account deficit of 4.0% of Gross Domestic Product (GDP) for Ghana in 2023, from 4.4% recorded in 2022. This is expected to impact positively on the value of the Ghana cedi.
“So significant production increases in Ghana’s three most important export products that is gold, oil and cocoa that will likely provide some support to the cedi. All of these factors inform our view that the cedi will remain on an upward trajectory, but there will be significantly less depreciatory pressures as compared to 2022”. Mr. Kruninger said.
The local currency in the past two weeks improve in value of more than 5% against the US dollar, narrowing its year-to-date loss.
Latest Stories
-
Highlife Legend Daddy Lumba’s posthumous reign deepens on Apple Music Ghana
36 minutes -
GES orders school heads to refund WASSCE practical fees to students
1 hour -
Asantehene hands over land for construction of Ghana School of Law campus in Kumasi
1 hour -
Over 200 substandard hospitality facilities in the Ashanti region face closure by GTA
2 hours -
Sinapi Aba’s Joyce Owusu-Dabo honoured Personality of the Decade by African Women in Banking and Finance Magazine
2 hours -
Africa AI Health forum explores practical uses of generative AI in healthcare
3 hours -
AG has recovered 10.6% of the Unibank liability, not 60% as he claims – Bright Simons
3 hours -
Residents commend MTN for community engagement, call for continuous service improvements in Tsito
3 hours -
Al-Azhariya Islamic cluster of schools in deplorable state: Teachers call for renovation
3 hours -
France urged to address colonial legacy as Senegalese activists call for reparations in Dakar Roundtable
3 hours -
“Eat AI, drink AI, live AI” – UG Professor
3 hours -
Direct Relief applauds Breast Care International for lifesaving medical support in Ghana
3 hours -
“A cultural force and national treasure” – Tourism Minister pays tribute to late Daddy Lumba
3 hours -
Kufuor mourns Highlife icon Daddy Lumba: “A thunderbolt to the nation”
3 hours -
Hindsight: Zito’s Kotoko era begins with a blast from the past
3 hours