The Ghana Association of Forex Bureaux has expressed a grim outlook for the Ghana cedi, citing its current downward trend and historical patterns during election years.
According to the association, the cedi has already depreciated by 11 percent against the US dollar this year, making it one of the worst-performing currencies globally.
Dr. Alex Akpabli, Vice President of the Association, emphasized that the struggling economy coupled with increased spending during election years would compound the challenges for the local currency. He stated, “We are not doing things right, which is affecting the cedi.”
Dr. Akpabli pointed out that with the current trends and the upcoming election year, the government is likely to increase spending to secure reelection. He clarified, “I am not politicising, but that is the case.”
Drawing from his experience, Dr. Akpabli expressed skepticism about any significant appreciation of the cedi unless there is a dramatic or miraculous change. He stated, “From my experiences over the years, I don’t see any appreciation going forward unless something dramatically or miraculously happens.”
Regarding Fitch’s projection of a 1.0% gain for the cedi against the US dollar in 2024, Dr. Akpabli highlighted the need for innovative approaches to attract foreign currencies into the country.
He emphasized, “We are not doing things that will bring foreign currencies into the country. We need to be innovative, otherwise, we will always see ourselves in a vicious cycle.”