The Economist Intelligence Unit (EIU), based in the United Kingdom, has projected that the cedi would lose over 22% of its value against the dollar by 2023.
According to its Africa Outlook 2023 Report, this will make the local currency the third worst-performing currency on the African continent.
The EIU forecasts that weakening exchange rates will persist into 2023 but to a lesser extent.
“Most African currencies have lost substantial value against the US dollar during 2022 and we expect exchange-rate weakness to continue into 2023, albeit to a lesser degree”.
It predicted that Sudan’s and Zimbabwe’s currencies would be among the world’s weakest in 2023 and that countries such as Ghana, Malawi, Sierra Leone, Ethiopia, and Egypt, all of which would experience high inflation rates, would see their currencies depreciate by more than 10% against the US dollar.
It further predicted that in 2023, even the currencies of Nigeria, South Africa, Angola, Algeria, and Kenya—five economic powerhouses on the African continent—would continue to lose value in comparison to the US dollar.
While this is happening, the Zambian kwacha will maintain its status as Africa’s best-performing currency in 2023, appreciating by almost 8% against the US dollar.
The CFA franc of Burkina Faso and the Cameroonian franc are projected to follow suit in appreciating versus the US dollar.
About 27% of its value has been wiped out in 2022 for the Ghana cedi. The current retail exchange rate for one US dollar is 11.25 yen.
Despite having one of its worst performances through the first eleven months of 2022, its value has risen sharply with the announcement of the Staff-Level agreement between the International Monetary Fund and the government at the start of this month.