Fitch Solutions Predicts Ghanaian Cedi To Bounce Back


In a positive outlook for Ghana’s economy, Fitch Solutions, an international rating agency, has stated that the cedi will soon appreciate and return to a strengthening trajectory.

The rating agency cited several factors that will contribute to the cedi’s recovery, notably the progress the government has made regarding the restructuring of its commercial debt.

Fitch Solutions believes that these advancements will bolster investor confidence in Ghana’s economy and policymaking processes, leading to increased foreign exchange inflows and a consequent strengthening of the cedi in the second half of 2024.

Furthermore, Fitch Solutions expects the Ghanaian cedi to recoup some of its recent losses in the months ahead, with the currency expected to end the year at USD 12.25.

This prediction comes as the cedi has depreciated by 11 percent against the US dollar so far this year, positioning it among the worst-performing currencies globally.

The rating agency also noted that the depreciation was coupled with worsening reserves, which resulted in low import cover.

However, Fitch Solutions is optimistic that the progress made in debt restructuring will help to address these challenges and pave the way for the cedi’s recovery.

Overall, the Fitch Solutions’ assessment provides a glimmer of hope for Ghana’s economy, as the country works to navigate the ongoing economic challenges.

By Vincent Kubi