It has been projected by the Economist Intelligence Unit (EIU) in the UK that the Ghana cedi is likely to depreciate by 30% this year compared to the dollar.
According to the 2023 Country Report on Ghana by the organization sighted by 1Family Radio, it was noted that the cedi will devalue significantly this year due to high inflation rates.
“We now expect the cedi to weaken to ¢12.46:US$1 at the end of 2023 from the ¢10.95:US$1 as at mid-April,’’ the report stated.
The UK-based organization noted that the depreciation will be propelled by the heightened demand for hard currency due to high importation prices, inflation, repatriation of foreign-based currency by Ghanaian-based multinationals and the capital flight.
EIU continued that they are expecting a gradual depreciation in 2024 to 2027 but at a slower pace than this year because of the uncertainties brought about by the debt restructuring program.
“Ghana’s sustained depreciation reflects the country’s structural current-account deficit and higher inflation than its trading partners,’’ the statement indicated.
It is however estimated that if the country is able to secure the approval of the Executive Board of the International Monetary Fund (IMF) by mid-April, it will help slow the depreciation of the cedi later in the year.