Market analysts at GCB Capital express optimism regarding the outlook of the cedi for the remainder of 2024, expecting it to stabilize by mid-year.
Despite facing rapid depreciation since February 2024 due to sustained corporate forex demand, Ghana’s economic indicators suggest an improving macroeconomic environment.
GDP growth is projected to rise from 2.9% in 2023 to 3.3% by year-end, with inflation expected to decrease from 38% to 18% in 2024.
To bolster the local currency, the Central Bank recently sold US$13 million in the spot market and $20 million to Bulk Oil Distribution Companies (BDCs) in the 51st auction.
Although the cedi depreciated against major currencies in Q1 2024, the rate was notably lower than in previous years.
Courage Boti, lead researcher at GCB Capital, sees hope for cedi stability due to improving macroeconomic conditions and potential absorption of forex demand through Bank of Ghana auctions.
Boti attributes ongoing optimism to factors like increased BDC demand and seasonal trends such as dividends repatriation in the second quarter.
