With exactly four months to the end of the year 2021, the Ghana Cedi is expected to experience some further marginal depreciation against the U.S Dollar, following a recent period of weakening an, economist with Databank, Courage Martey has predicted.
“Looking at the amount of pressure on the currency already and looking at the size of the external factors for Ghana until the end of the year, we see scope for some more depreciation, albeit modest depreciation before the end of the year. So from where we are it would not be out of place to see the Cedi recording some more depreciation,” he said in an interview with citibusiness news in Accra yesterday.
After showing a rare determination to shed only about 3.8 per cent of its value against the US dollar last year, the local currency continued its trend of stability throughout the first half of 2021.
The Ghana Cedi begun the year 2021 trading at GH¢5.76 pesewas to a dollar. By the middle of the year, which is June ending, it was still trading at GH¢5.76 pesewas to a dollar, showing no depreciation for the first six months.
The following two months, July and August however were a different story, as the local currency lost almost two per cent of its value, as factors like the rising level of imports among others put pressure on the local currency.
“First of all if you look at the fact that by the end of this year we still expect to record a current account deficit in the region of three per cent, and we still are looking at an inflation rate although in single digit this year, but above eight per cent. These indicators show that there is scope for the depreciation of the Cedi beyond where we are today,” he said.
With exactly four months to the end of the year 2021, the Ghana Cedi is expected to experience some further marginal depreciation against the U.S Dollar, following a recent period of weakening.
After showing a rare determination to shed only about 3.8 per cent of its value against the US dollar last year, the local currency continued its trend of stability throughout the first half of 2021.
The Ghana Cedi begun the year 2021 trading at GH¢5.76 pesewas to a dollar. By the middle of the year, which is June ending, it was still trading at GH¢5.76 pesewas to a dollar, showing no depreciation for the first six months.
The following two months, July and August however were a different story, as the local currency lost almost two per cent of its value, as factors like the rising level of imports among others put pressure on the local currency.
