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The Ghana cedi is expected to recoup some losses against the dollar in the coming months, Fitch Solutions has revealed.
According to the London-based firm, this is due to improved investor sentiment, higher dollar inflows, and easing external conditions,
It mentioned in an article dubbed “Sub-Saharan Africa currency round-up: greater stability ahead in second half of 2024” that external conditions would offer more support to Sub Sahara African currencies in the coming quarters.
“We expect the Ghanaian cedi to fare better in H2 [second-half of 2024]. In the year to date, the cedi has lost 19.2% of its value against the US dollar, positioning it among the worst performing currencies globally. Subdued market sentiment amid debt restructuring negotiations has kept capital inflows weak, while the start of an economic recovery – real GDP growth accelerated from 3.8% in Q4 [quarter 4] 2023 to 4.7% year-on-year in quarter 1 2024 – has increased demand for foreign exchange.”
