The Ghana cedi has recorded relative stability to the dollar and all the other major currencies this yuletide period.
The local currency is hovering around ¢11.50 on average to the dollar in the retail or forex market. However, the Bank of Ghana is quoting the dollar at ¢8.309 on the interbank market.
Checks by Joy Business at some forex bureaus indicate that the dollar is being sold for ¢11.50 on average, whilst the pound and the euro is going for ¢12 and ¢13.70 respectively to the local currency.
The relative stability of the cedi comes as a good omen for the economy as fuel prices are expected to go down for the next two weeks, beginning January 1, 2023.
The local currency has witnessed immense volatility this year, losing about 27% in value year-to-date. At a point in time, it was the weakest currency on the African continent.
There are mixed developments with respect to the expected performance of the cedi come next year.
Whilst Fitch Solutions is predicting a stronger cedi in 2023 on the back of a programme from the International Monetary Fund, Economist Intelligence Unit is forecasting about 22% depreciation of the cedi to the American greenback in 2023.
Fitch Solutions predicts stronger cedi in 2023
International institution, Fitch Solutions, is predicting a stronger cedi against the major foreign currencies in 2023.
According to its latest analysis of Ghana’s 2023 Economic Outlook, it said the likely programme from the International Monetary Fund (IMF) signals to investors that the government is committed to fiscal consolidation that will turn around the country’s economic predicament.
Cedi to depreciate by about 22% in 2023 – EIU
UK based Economist Intelligence Unit (EIU)is predicting about 22% depreciation of the cedi to the dollar in 2023.
This will rank the local currency as the 3rd weakest performing currency on the African continent, according to its Africa Outlook 2023 Report.