Ecobank Transnational Incorporated’s (ETI)’s latest currency market update report for Africa predicts further decline for the Ghana cedi due to strong demand for dollars for imports.
According to the bank, by the end of 2013 the buying rate for one dollar will be GHS2.1 . Currently the buying rate is GHS1. 96.
Head of the Economic Research Wing at Ecobank, Angus Downie, however, told Joy Business he is optimistic government would be able to manage the situation to ensure things do not get out of hand.
‘Minister of Finance, Fred Terkpeh, is [resolved] in addressing all these areas and issues and strengthening fiscal policy, and based on that commitment shown by him and the rest of the administration, I think there’s going to be some strengthening of fiscal policy’, Mr Downie said.
He said if there was a significant boost in export revenue from not only cocoa, but also timber and gold along with increased levels of oil production and exports, it will boost foreign revenues into the exchequer and bring about further inflows of dollars into the Ghanaian economy.
But despite the cedi’s challenges, it is doing well against its peers in Africa in terms of the rate of depreciation against the dollar.
The Ghana cedi moved from the second most depreciated currency against the dollar to fifth in Africa.
The Ecobank currency market update report tracks the weekly and year to date performance of the currencies of 22 African countries against the dollar.