According to Fitch Solutions, the Ghana cedi is anticipated to end 2023 at 12.40 to the US dollar.
Because of this, depreciation will occur at a pace that is much lower than the 38% observed last year.
The research and market intelligence company’s claim is predicated on the idea that Ghana will be able to secure an IMF-supported program by May 2023, which will go a long way toward protecting the cedi from pressures related to foreign exchange.
The IMF executive board has approved Ghana’s program, and while there will continue to be short-term exchange rate volatility, the IMF expects the cedi will stabilize once a formal creditors’ committee is established.
The cedi currently trades at 12 to the US dollar, having lost around 14% of its value thus far.
However, on the interbank foreign exchange market, it is now worth roughly 10.95 compared to the American dollar, down about 21%.
Although the Central Bank boosted its participation in the spot market over the past two weeks, the local currency has had a mixed performance on the markets.
This is because of increased demand for foreign currency brought on by market uncertainties.