Fitch Solutions has revealed that the Ghanaian cedi is anticipated to strengthen by approximately 1.0% against the US dollar in 2024 in its latest Country Risk report on Ghana.

This projected gain positions it as one of the top-performing currencies in Africa during that timeframe.

According to the UK-based firm, the government is expected to make significant headway in the restructuring of Ghana's external debt through the G20 Common Framework by the second quarter of 2024. This development is predicted to bolster investor confidence in Ghanaian assets, stimulate capital inflows, and provide essential support to the strength of the cedi.

“We forecast that the exchange rate will strengthen by roughly 1% in 2024 as we believe that the authorities will make progress regarding the restructuring of Ghana’s external debt under the G20 Common Framework”.

“Indeed, we anticipate that a deal will be reached around quarter 2 2024-quarter 3 2024, which will improve investor sentiment towards Ghanaian assets, drive capital inflows and provide support to the cedi.

In the past week, the Ghanaian cedi experienced a slight devaluation against the US dollar, attributed to increased domestic demand and the overall global strengthening of the US dollar.

However, a timely announcement by the International Monetary Fund Mission Team regarding a staff-level agreement with the Ghanaian government is anticipated to significantly boost investor confidence and enhance the country's balance of payments in the future. This agreement will result in an additional $600 million inflow.

Forecasts indicate that by the end of 2024, the local currency is expected to depreciate by approximately 11.50% against the US dollar in the retail market, reaching a rate of ¢11.60 to one US dollar. This projected depreciation is notably lower than the approximately 40% devaluation observed in 2023.