The
Ghana
Cedi
is
expected
to
recover
some
losses
against
the
dollar
in
the
coming
months,
Fitch
Solutions
has
disclosed.
According
to
the
London-based
firm,
this
is
due
to
enhanced
investor
confidence,
increased
dollar
inflows,
and
easing
external
conditions.
In
an
article
titled
“Sub-Saharan
Africa
Currency
Round-Up:
Greater
Stability
Ahead
in
Second
Half
of
2024,”
it
is
predicted
that
external
conditions
will
provide
more
support
to
Sub-Saharan
African
currencies
in
the
coming
quarters.
The
London-based
ratings
agency
expects
the
Ghanaian
cedi
to
perform
better
in
the
second
half
of
2024.
So
far
this
year,
the
cedi
has
lost
approximately
20%
of
its
value
against
the
US
dollar,
making
it
one
of
the
worst-performing
currencies
globally.
Weak
capital
inflows
due
to
subdued
market
sentiment
and
ongoing
debt
restructuring
negotiations
have
contributed
to
this
decline.
However,
the
start
of
an
economic
recovery,
with
real
GDP
growth
accelerating
from
3.8%
in
Q4
2023
to
4.7%
year-on-year
in
Q1
2024,
has
increased
demand
for
foreign
exchange.
Ghana’s
international
reserves
remain
low,
covering
just
2.5
months
of
imports
as
of
March.
Along
with
IMF
agreements
allowing
the
exchange
rate
to
adjust
to
market
conditions.
Fitch
Solutions
projects
that
the
cedi
will
regain
value
by
9.0%
by
year-end,
from
the
July
9,
2024,
spot.
On
July
8,
Ghana
reached
an
agreement
with
international
bondholders
to
restructure
US$13
billion
worth
of
external
debt.
This
process
is
expected
to
be
concluded
by
the
end
of
September
2024.
Fitch
Solutions
stated
that:
“this
restructuring
will
improve
investor
sentiment
towards
Ghana,
enhance
capital
inflows,
and
apply
appreciatory
pressure
on
the
cedi”.
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