The Ghana cedi will end this year at GH¢15.50 to one US dollar, with an annual average of GH¢15.30/US dollar, Fitch Solutions has predicted.
This is far higher than the GH¢14.00 end-of-year forecast by Absa Bank. The local unit however started the year trading at GH¢15.83 to one American greenback.
In its latest report, dubbed “High gold prices will shield Ghanaian economy from tariff fallout”, the UK-based firm said it expected the Bank of Ghana to focus on keeping the cedi stable, facilitated by elevated gold prices.
The report however stated that “this will not be enough to preserve the stability of the cedi for the entire year.”
“We expect the BoG to focus on keeping the cedi stable, facilitated by elevated gold prices. Amid ongoing uncertainty surrounding US trade policy, market expectations of interest rate cuts by the US Federal Reserve, and continued geopolitical tensions, our commodities team forecasts that gold prices will average a record US$3,100 per ounce this year – up 29.7 per cent from 2024,” the report said.
“Coupled with a lower energy import bill due to declining oil prices, this will drive Ghana’s current account surplus to an all-time high of 6.9 per cent of GDP [Gross Domestic Product] in 2025,” it said.
The report said it expected foreign exchange reserves to increase from US$6.4 billion to US$11.5 billion.
“The strengthened external position will enable the BoG to mitigate any bouts of cedi volatility stemming from global risk-off sentiment,” the report said.
The Ghana cedi continued to gain further ground against the US dollar, appreciating by 17.17 per cent as of Monday.
It went for GH¢13.50 to one American greenback in the retail market, cementing its position as the world’s best currency.
BY TIMES REPORTER
