The Ghanaian cedi is expected to undergo a single-digit depreciation against the US dollar in 2024, according to The Economist Intelligence Unit's (EIU) 2024 Africa Outlook Report. The EIU attributes this potential stability to the positive impacts of the International Monetary Fund (IMF) programme.

The report highlights that only five African countries—Egypt, Sudan, Ethiopia, Angola, and Zimbabwe—are projected to experience double-digit depreciation of their currencies in 2024. Conversely, countries in the CFA franc zone, representing Central and West African nations, are anticipated to witness currency appreciation during the same period.

While the report predicts currency depreciation against the US dollar across much of Africa in 2024, it suggests that the adjustments will be less severe than those recorded in 2023.

Despite this positive outlook, the Ghanaian cedi is currently trading at ¢12.18 in the retail market, facing persistent pressure. High demand from corporates and importers, particularly in anticipation of the Christmas season, remains a contributing factor.

However, the imminent arrival of the first tranche of the Cocoa Syndication Loan, following parliamentary approval, is expected to alleviate some of this pressure. GCB Capital underscores that the cedi's future stability is contingent on the timing of expected foreign exchange inflows from the cocoa syndication loan and the second tranche of the International Monetary Fund.

Analysts and market observers anticipate that these inflows, scheduled for the remainder of quarter 4, 2023, will significantly influence the cedi's performance for the rest of the year.