The Ghana cedi’s resurgence continues, with the currency gaining further value this morning, December 16, 2022, to trade at ¢9.7 to the US dollar on average.
According to retail forex rates spotted by Joy Business, the local currency has also gained value versus the euro and the pound sterling.
It is now trading at ¢9.9 to the euro and ¢11.8 to the pound.
The local currency has gained almost 35% in value against the US dollar over the last two weeks, bringing its year-to-date depreciation to roughly 20%. Without a doubt, the cedi’s performance will place it among the greatest currencies in the world, having rebounded quickly from its difficulties.
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However, several analysts have warned that the cedi’s recent exceptional success may not be fundamentally supported.
Rather, this is owing to an agreement struck at the staff level between the International Monetary Fund and the Government of Ghana.
In this context, the government must guarantee an IMF programme is finished by the first quarter of 2023 to sustain the performance of the cedi, which has been spurred by investor attitudes ergarding the outlook of the Ghanaian economy.
Fitch expects the cedi to strengthen in 2023.
Fitch, an international rating agency, has already predicted a higher cedi versus the dollar in 2023.
According to its most recent study of Ghana’s 2023 Economic Outlook, the expected IMF program communicates to investors that the government is dedicated to fiscal consolidation that would turn around the country’s economic situation.
According to Mark Kruninger, Senior Country Risk Analyst at Fitch Solutions, the IMF’s announcement of the staff-level agreement has helped to strengthen the cedi’s value.
SOURCE: myjoyonline
