Analysts Warn Of Cedi Volatility Risk Despite Recent Gains
Market analysts want both monetary and fiscal authorities to consolidate the recent gains of the Ghana cedi and guard against a potential reversal.
The local currency, which crossed the GH¢17 mark on the retail market in 2023, is now trading around GH¢14 — showing signs of resilience many describe as one of the best performances in recent years.
Macroeconomic Research Manager at GCB Bank PLC, Courage Boti tells Citi Business News, the performance is being driven by a mix of improved forex liquidity but cautioned against any slippage in fiscal discipline.
“Ghana has a history of improved market sentiment following elections and changes in political leadership, particularly reflected in a strengthened exchange rate. However, this trend isn’t new, and the key issue now is how to sustain the momentum.”
“The tone at the top is good but we have seen this before, so the question is about what to do to sustain it. We have talked about about fiscal discipline, we have talked about bringing inflation down”.
“The responsibility lies with the Finance Minister and the government to back their promises with action by maintaining investor confidence and economic stability by demonstrating real progress in revenue generation and expenditure control without accumulating excessive arrears.”
