Cedi to bounce back to appreciating trajectory soon - Fitch Solutions

Fitch Solutions, an international rating agency, has said the Ghanaian cedi will bounce back to an appreciating trajectory very soon.

The rating agency said factors, notably the progress the government had made regarding the restructuring of its commercial debt, would strengthen the cedi.

The rating agency said it expected that the progress made would boost investor confidence in Ghana’s economy and policymaking processes, leading to increased foreign exchange inflows and a consequent strengthening of the cedi in the second half of 2024.

Fitch Solution said it also expected that the Ghanaian cedi would recoup some of its recent losses in the months ahead, ending the year at USD 12.25.

According to the rating agency, the currency had depreciated by 11 percent against the US dollar so far this year, positioning it among the worst-performing currencies globally.

It also noted that the depreciation was coupled with worsening reserves, which occasioned low import cover.