- The Ghanaian cedi is expected to depreciate only moderately between now and the December elections
- The cedi is currently trading at GH¢15.63 to the dollar and is considered the fifth worst performing currency of the year by Bloomberg
- Ghana may end the year at GH¢15.97 to the dollar, according to an analyst at FirstRand Ltd’s RMB Nigeria unit.
Analysts expect the Ghanaian cedi to weaken modestly between now and the December elections.
This followed sharp falls earlier in the year that saw the cedi depreciate more than 19.6 percent against the dollar since July 2024.
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Bloomberg reported that Ghana may end the year at GH¢15.97 to the dollar, according to Oyinkansola Samuel, an analyst at FirstRand Ltd’s RMB Nigeria unit.
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The cedi is currently trading at GH¢15.63 to the dollar and is considered the fifth worst performing currency of the year.
“We expect the rate of depreciation to slow by the end of the year as multilateral disbursements and ample reserve accumulation improve market sentiment,” Samuel said.
Samir Gadio, head of Africa strategy at Standard Chartered Bank Plc, also said foreign exchange demand-supply mismatches have eased.
He said the depreciation of the CEDI could slow due to the IMF disbursement and an upcoming cocoa financing facility.
The cedi has been hit by this year’s poor cocoa crop, which provides Ghana with a vital source of foreign exchange earnings.
There were also concerns for investors during protracted debt restructuring talks amid the default that led Ghana to seek IMF support.
IMF support to help the Cedi
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Expected dollar inflows from the IMF are expected to unlock funds from other multilateral lenders.
Ghana has received $1.6 billion so far under the $3 billion bailout it agreed with the Washington-based lender in May 2023 and expects an additional payment of $360 million in the fourth quarter.
The World Bank also approved $250 million for a five-year Ghana Financial Stability Project.
The World Bank has also set aside $900 million for the so-called Resilient Recovery Development Policy Financing for Ghana, of which $300 million has already been released.
Mahama will renegotiate the IMF deal
YEN.com.gh reported that National Democratic Congress flag bearer John Mahama plans to renegotiate Ghana’s IMF bailout.
Mahama told Reuters the IMF would not be against a renegotiation based on its experience from a previous program.
Corrected by Berlinda Entsie, reporter and copy editor at YEN.com.gh
Source: YEN.com.gh
