The Ghana Cedi may continue to be pressured in 2023 versus the US dollar if steps are not made to reduce the nation’s current account deficit to a manageable level, according to the World Bank’s January 2022 Global Economic Prospects report.
Following days of consistent stability, the Ghana Cedi was trading at 12 to the US dollar on January 10, 2023, in the retail or FX market.
This represented a drop in value of around 0.86% since the year’s beginning.
The report further stated; “Large current account deficits are likely to keep currencies under pressure in several countries, adding to inflation and external vulnerabilities (Gambia, Ghana).”
The World Bank’s report encouraged the government to take extra measures to manage its current account deficit in 2023.
The necessity to implement measures that will increase exports and reduce imports at the same time was also highlighted.
In addition to helping to stabilize the economy and address some of the threats that would have a negative impact on the local currency, it was highlighted that implementing these measures in the coming months will also help with policies aimed at containing inflation.
