Dr. Alex Akpabli, the Vice President of the Forex Bureau Association of Ghana, has predicted a surge in the local currency against the US dollar owing to the assurances by the creditors committee as a precursor for the $3 bilIion IMF loan.
Dr. Akpabli disclosed that members of the association are hopeful that the $3 billion Extended Credit Facility from the IMF would be secured soon, which would boost confidence in Ghana’s economy and help struggling businesses.
According to the Vice President of Association, once the funds are credited to the Bank of Ghana’s account, the country’s economy would bounce back and become sound and robust.
“The cedi will continue to gain value in the coming days, following the successful financing assurance secured from Ghana’s external creditors under the G-20 Common Framework to help restructure the country’s debt.”
Dr. Alex Akpabli
Meanwhile the Ghanaian economy has been on its knees for the past 2 years as unsustainable debt situation and its impact on the country’s reserve, which put much pressure on the local currency.
However, the recent happenings in the form of the announcement by the creditors committee has brought some sort of stability to the market which has been struggling against the American greenback.
Successful Deal to Shore Up the Value of the Cedi
The Vice President of the Forex Bureau Association of Ghana, meanwhile, expressed optimism that the successful deal will shore up the value of the cedi.
The expected gains of the cedi against the dollar and other major foreign currencies this week is expected to further boost investor confidence in the Ghanaian economy. As of today, the cedi has gained further grounds to sell at GH¢11.78 to one American greenback, which is a significant improvement since March 2023 when it began to record stability against the world’s most important currency.
The cedi has also recorded stability against other major foreign currencies such as the pound and euro, going for GH¢14.90 and GH¢12.97, respectively. These developments are good news for businesses and the Ghanaian economy as a whole, as they indicate that the country is on the path to economic recovery.
However, there are still challenges to be faced in the near future. The country’s debt burden is still significant, and there are concerns that the IMF deal may not be enough to bring about long-term stability. Furthermore, the impact of the COVID-19 pandemic on the economy is still being felt, with many businesses struggling to stay afloat.
Despite these challenges, the optimism expressed by the Forex Bureau Association of Ghana is a positive sign, indicating that the country is moving in the right direction.
If the successful deal with the IMF is secured, it could go a long way towards restoring investor confidence and boosting economic growth. It remains to be seen how events will unfold in the coming weeks and months, but the signs are encouraging for Ghana’s economic future.
Meanwhile, the prediction by the Dr Akpabli is in tandem with the one predicted by Fitch Solutions. Fitch Solutions predicted last week that the Ghanaian currency will end the year on a strong note, with an exchange rate of GH¢12.40 to one US dollar.
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