The cedi will lose value relative to the dollar by around 22% in 2023, according to the UK-based Economist Intelligence Unit (EIU).
According to its Africa Outlook 2023 Report, this will make the local currency the third-weakest performing currency on the African continent.
The EIU anticipates that, albeit to a lesser extent, the exchange rate weakening will persist beyond 2023.
“Most African currencies have significantly depreciated against the US dollar in 2022, and we anticipate more depreciation in 2023, but to a lesser extent.”
According to the report, in 2023, the currencies of the troubled nations of Sudan and Zimbabwe will rank among the weakest in the world, while those of Ghana, Malawi, Sierra Leone, Ethiopia, and Egypt—all of which will experience high rates of inflation—will see their currencies decline by more than 10% in value relative to the US dollar.
It went on to say that African powerhouses Kenya, Nigeria, South Africa, Angola, and Algeria would not be free from the currency weakening and will continue to see their currencies fall against the US dollar in 2023.
In contrast, the Zambian kwacha will continue to be Africa’s best performing currency in 2023, appreciating in value by roughly 8% against the US dollar.
Following it are the CFAs of Burkina Faso and Cameroon, both of which are anticipated to strengthen against the US dollar.
The value of the Ghana cedi has decreased by just over 27% so far in 2022. In the retail market or the foreign exchange bureau, it is now trading for 11.25 to one US dollar.
The first eleven months of 2022 saw one of its poorest performances; however, after the Staff-Level Agreement between the International Monetary Fund and the government was published at the beginning of this month, it saw a significant increase in value.