THE CEDI’S depreciation to the US dollar is expected to slow down over the coming year with an expected value loss of just 3.1 per cent on average, international research firm, Fitch Solutions has noted.
The cedi’s strong performance has been partly attributed to the central bank’s bi-weekly Foreign Forward Auctions and Spot Market interventions supported by healthy secondary reserves, which are equivalent to about 4.3 months of imports.
The research firm indicated that Ghana’s exports were also expected to recover strongly in 2021 on the back of higher international oil prices, recovering cocoa exports and continued strength in gold shipments.
In its latest analysis, Fitch Solution said however, that imports would rebound due to rising household consumption and business investment.
“We expect the cedi to lose just 3.1% of its value against the dollar over the year on average,” the firm stressed.
The Ghana Cedi, as at November 18, 2020, has recorded a depreciation of 3.1 per cent against the US dollar compared with a depreciation of 10.1 per cent same period last year.
By Ernest Kofi Adu