The Ghana Association of Forex Bureaux says the recent cedi depreciation will not end if practical measures are not put in place to halt the situation.
The Association is worried the development could negatively impact the operations of businesses.
Vice President for the Association Dr. Alex Akpabli said the current state of the economy may not help stabilize the cedi.
He explained that, the 2024 election spending will have a negative impact on the cedi against other foreign trading currencies.
“We are not doing things right which is affecting the cedi. Looking at the trends, and this year also being an election year, government would have to spend a lot to be retained. I am not politicizing but that is the case.”
“From my experiences over the years, I don’t see any appreciation going forward unless something dramatically or miraculously happens”, he said.
Reacting to the Fitch Solutions projections of the Ghana cedi to strengthening by about 1.0% to the US dollar in 2024, Dr. Akpabli said there is the need for government to do more.
He urged government to be heavy on cutting down expenditure and invest in local industries.
“We are not doing things that will bring foreign currencies into the country. We need to be innovative, else we will always see ourselves in a vicious cycle,” he added.
The local currency has depreciated by 11.0% against the US dollar so far this year, positioning it among the worst performing currencies globally.
Meanwhile, Fitch Solutions is forecasting an end-year cedi to dollar rate of GH¢12.25 to one US dollar, arguing the Ghanaian cedi will recoup some of its recent losses in the months ahead.
In its Sub-Saharan Africa Currency Round-Up, it said the cedi will strengthen as the government makes progress regarding the restructuring of its commercial debt.