Professional services firm, Deloitte, is predicting a slowdown in the depreciation of the cedi to continue for the rest of the year.
This is primarily due to the expected inflows of forex from the International Monetary Fund (IMF) programme and the World Bank Development Policy Operation (DPO) funding.
The Economist Intelligence Unit also noted that the relative slowdown in depreciation can be largely attributed to improved foreign-exchange liquidity and a strong and growing current-account surplus.
However, Deloitte warned that the declining cocoa production is a major risk to exchange rate stability.
It therefore wants the government to address the declining cocoa production to help boost the country’s forex reserves and reduce the foreign exchange demand pressure.
“Whilst we acknowledge the various policy interventions intended to mitigate our FX risks (i.e. streamlining gold sales through the GoldBod, intensifying forward FX [foreign exchange] auction, reducing public spending and budget deficit, and prioritising import substitution), we have identified the declining cocoa production as a major issue that must be addressed to also help in boosting our forex reserves and reducing the FX demand pressure”.
In 2024, the Ghana cedi lost about 19% in value to the US dollar. It also depreciated by 17.80% to the pound and 13.70% to the euro.
Latest Stories
-
Joy Prime to premiere “PrimeTime” with George Quaye on June 18
17 minutes -
Israel carrying out ‘extensive strikes’ across Iran as Tehran warns ‘more severe’ response coming
40 minutes -
Government suspends GH₵1 fuel levy indefinitely, new date to be announced later
1 hour -
Democratic state politician and husband shot dead in targeted attack
1 hour -
15 killed by Israeli fire near Gaza aid site, hospitals say
1 hour -
Ashaiman NDC in shock as chairman Shaddad Jallo dies
2 hours -
Mahama converts Daboya College into public Teacher Training Institution, revives Doli project
2 hours -
Prioritise prudence, not foreign debt – Deputy Ahafo Regional Imam implores African leaders
2 hours -
Mahama promises STEM School and TVET Centre for Savannah Region
2 hours -
Mahama announces new public university for Savannah Region
2 hours -
Ahiagbah demands Health Minister’s dismissal over handling of nurses’ strike
2 hours -
Mahama’s clemency for radio stations was pure gimmick – Egyapa Mercer
2 hours -
GRA postpones implementation of Energy Sector Levy
2 hours -
GES urges supervisors and invigilators to uphold integrity and honesty
5 hours -
Don’t let your parents down – Omane Boamah to Pope John SHS students
5 hours