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The Ghana cedi is expected to strengthen by roughly 1.0% to the US dollar in 2024, Fitch Solutions has disclosed in its latest Country Risk on Ghana.
This will make it one of the best-performing currencies in Africa during the period.
According to the UK-based firm, the government will make progress regarding the restructuring of Ghana’s external debt under the G20 Common Framework by the second quarter of 2024.
This it says will boost investor sentiment towards Ghanaian assets, drive capital inflows, and provide support to the cedi.
“We forecast that the exchange rate will strengthen by roughly 1% in 2024 as we believe that the authorities will make progress regarding the restructuring of Ghana’s external debt under the G20 Common Framework”.
“Indeed, we anticipate that a deal will be reached around quarter 2 2024-quarter 3 2024, which will improve investor sentiment towards Ghanaian assets, drive capital inflows and provide support to the cedi.
Last week, the cedi shed some marginal value against the US dollar, following increased domestic demand and the strengthening of the US dollar globally.
However, the timely announcement by the International Monetary Fund Mission Team to Ghana of a staff-level agreement reached with the government would boost investor confidence and strengthen the country’s balance of payment going forward The deal will culminate in another $600 million inflows.
The local currency is expected to end 2024 at a depreciation of 11.50% to the American greenback on the retail market. It will consequently sell at ¢11.60 to a dollar.
This will be far lower than the about 40% depreciation it recorded in 2023.
