The current rate of the Cedi’s depreciation is likely to slow down, if government is able to conclude its negotiations with IMF on time, as well as introduce effective policies in the upcoming 2023 budget reading next month.
This is according to Economist Dr Patrick Asuming.
A latest Bloomberg report has ranked the Ghana cedi as the second worst performing currency in the world after Sri Lanka’s Rupee.
The Cedi has seen its value drop by over 40 percent when compared to the US dollar in the first nine months of this year. The development has since placed the cedi in the 147th position in the world among major currencies.
In an interview with Citi Business News, Dr. Patrick Asuming said government must do all it can to strengthen the cedi.
“There are two news items that we are expecting before the end of the year which could make a difference. One is if the IMF deal goes through and the other is what the finance minister will say during the reading of the 2023 budget. If there is the indication from the budget that the government is showing commitment by way of fiscal policy measures, we might see some improvement”.
Dr. Asuming also said “If also there is the indication that the IMF deal has been agreed and we will make progress quickly, that might change investor sentiments and there by improve what will happen after that”.