Fitch Solutions is forecasting the Ghana cedi to end 2023 at ¢11.40 against the dollar.
This is lower than the ¢12.40 it predicted earlier in the year, at a time Ghana was yet to reach an agreement with the International Monetary Fund for a bailout package.
The UK-based firm is also projecting ¢10.90 to one dollar in 2024, fuelled by expected inflows from the International Monetary Fund programme and improve investor confidence.
The cedi is presently going for ¢11.53 to the dollar in the retail market and ¢11.05 to the American greenback on the interbank market.
Since Ghana secured the IMF bailout package in May 2023, the local currency has remained relatively stable against the dollar and all the major foreign currencies.
“While short-term exchange rate volatility will persist, we believe that the cedi will stabilise once a formal creditors’ committee is formed and the IMF executive board approves Ghana’s programme”, it earlier stated.
Forex market was choppy last week
The forex market was a bit choppy last week as the cedi saw some volatility against the US dollar.
This is despite the Bank of Ghana announcing plan to auction $120 million in its FX forward auctions for the Bulk Oil Distribution Companies quarter 4, 2023, with $20 million to be sold in each of the six auctions throughout the period.
The local currency shaved 0.35% in value to the American greenback. It, however, strengthened 1.02% and 0.20% against the pound and euro respectively on the retail market.
The year-to-date loss of the cedi to the dollar on the retail market stood at 11.40%, whilst the interbank market was estimated at about 22%.