The cedi will lose 30% of its value against the dollar in 2023, according to the Economist Intelligence Unit (EIU).

However, this is less severe than the local currency's approximate 44% depreciation in 2022.

The UK-based company stated that it anticipates the cedi to decline sharply this year in its 2023 Country Report on Ghana.

“We now expect the currency to weaken to ¢12.46:US$1 at end­ 2023 (from ¢10.95:US$1 as at mid­-April).”

It further said that the cedi depreciation will be driven by increased demand for hard currency due to high import prices, inflation, capital flight, rising profit repatriation by Ghanaian-based multinationals and weak investor sentiment in the face of the ongoing debt crisis.

However, sustained fiscal and monetary tightening and the anticipated Executive Board approval of an IMF program by mid-2023 will slow the cedi's relative decline over the second half of the year.

It added “we expect further gradual depreciation in 2024­-2027, to ¢14.70: US$1 at end 2027, but at a much slower pace than in 2022­-2023 as debt-restructuring uncertainties abate. Ghana’s sustained depreciation reflects the country’s structural current-account deficit and higher inflation than its trading partners”.

It concluded that reserves will average 3.3 months of import cover over 2023-2027, just above the internationally regarded prudential minimum of three months.

The cedi begun trading May 2, 2023 at ¢12.10 pesewas to the dollar on the forex or retail market.

It is also selling at ¢14.98 to the pound and ¢13.00 to the euro.