Despite the country facing pressure on its currency the cedi, Ghana is set to record some gains against the dollar in the coming months. This is going by findings published by Fitch Solutions, the research arm of ratings agency Fitch which predicts that the country will see the pressure on its currency ease off a little had in the past expressed concerns on Ghana’s economic outlook for the year. However, as a result of recent monetary policy actions by the Bank of Ghana as well as fiscal measures from the Ministry of Finance, the country is likely to experience some stability shortly.
In March, the monetary policy committee of the Bank of Ghana upwardly revised the policy rate by 2.5% to 17%, the first time it would do so since November 2018; while mandating commercial banks to increase cash reserves by 12%. In the same vein, the Ministry of Finance also embarked on fiscal measures in order to restore consumer and investor confidence. Some of its measures include a reduction of discretionary spending by 10% and reducing fuel allowance to public office holders, appointees and heads of government by 50%.
The cedi is the worst performing African currency in the first three months of 2022 as it has lost at least 18% of its value since the start of the year and is currently trading at 7.45 while its year-to-date depreciation is at 15.56%.
