Fitch Solutions, an esteemed international rating agency, has projected a rebound for the Ghanaian cedi, foreseeing an appreciating trajectory in the near future. The agency attributes this optimistic outlook to significant factors, particularly the strides made by the government in restructuring its commercial debt, which is anticipated to fortify the cedi.
Highlighting the potential impact of the government's debt restructuring efforts on investor sentiment, Fitch Solutions expects an uptick in confidence in Ghana's economy and policymaking processes. This surge in confidence is predicted to attract increased foreign exchange inflows, ultimately bolstering the cedi's value in the latter half of 2024.
Moreover, Fitch Solutions anticipates that the Ghanaian cedi will regain ground lost earlier in the year, projecting a year-end valuation of USD 12.25. The Cedi has faced challenges in 2024, experiencing an 11 per cent depreciation against the US dollar, a performance that places it among the worst-performing currencies globally. This depreciation has been exacerbated by dwindling reserves, leading to concerns over low import cover.
Amidst these challenges, Fitch Solutions remains optimistic about the cedi's recovery, buoyed by expectations of continued progress in debt restructuring and the subsequent positive impact on investor confidence.