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    Ghana’s total exports decline by 9%

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    Cedi depreciates against the dollar by 22.5%

    Financial sector withstood 2022 shocks; positive signs ahead – BoG

    Water shortage to hit parts of Accra; businesses to be affected

    Influx of Chinese tanker trucks will kill local businesses – Kwame Jantuah

    GRA fights off claims of harassing traders; calls for cooperation

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    Ghana’s total exports decline by 9%

    Cedi depreciates against the dollar by 22.5%

    Financial sector withstood 2022 shocks; positive signs ahead – BoG

    Water shortage to hit parts of Accra; businesses to be affected

    Excise tax amendment shows positive signs; rakes in GHS 140m 

    Ghana records over $200m trade surplus in two months

    Public debt hits GHS 575.5 billion; now 71.9% of GDP

    GEPA poised to achieve over $4bn target for non-traditional exports

    GRA fights off claims of harassing traders; calls for cooperation

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    Cedi depreciates against the dollar by 22.5%

    Financial sector withstood 2022 shocks; positive signs ahead – BoG

    Water shortage to hit parts of Accra; businesses to be affected

    Influx of Chinese tanker trucks will kill local businesses – Kwame Jantuah

    GRA fights off claims of harassing traders; calls for cooperation

    Hanno Barkhoff joins Kempinski Hotel Gold Coast City Accra as General Manager

    WTO Director-General calls for ratification of Fisheries Subsidies Agreement

    B5 Plus is an iconic testament of success of 1D1F initiative – K.T. Hammond

    BoG advised me to streamline Menzgold operations – NAM 1

  • TECHNOLOGY

    Genius IT Foundation achieves STEM.org accreditation

    Pharmaceutical Society charged to utilize AI to transform industry

    Apple says iPhone and iPad apps will show up on the vision OS App Store from the get-go

    China launches $41 billion fund to accelerate semiconductor industry

    Digital marketing: Event managers urged to explore growth opportunities

    Govt. urged to commit more investments to enhance AI competencies

    Stakeholders in digital ecosystem charged to do more to protect child privacy

    Cyber hygiene key for public safety – Dr. Albert Antwi Boasiako

    Ban on cryptocurrency still in force – Finance Ministry warns

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    Ofori-Atta commends G20 for AU’s inclusion, urges common voice

    Nine ventures announced for Africa Money and DeFi Summit investment showcase

    African Union to launch regional credit rating agency in 2024

    New study reveals alarming food access disparity affecting 650 million Africans

    Global food price index declines in August

    ECO currency challenges: Technical committee attributes delays to external shocks, others

    African leaders emphasize in-continent processing of mineral wealth at climate summit

    Indian investors commit $14 billion to Nigeria, to strengthen several Nigerian sectors

    African Development Bank announces $25 billion pledge to boost climate finance in Africa

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Fitch projects 43% depreciation of the cedi, higher inflation in 2022

byEllen Dapaah
August 24, 2022
in Economy, Top Stories
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The hope of Ghanaians to see an end to the sharp rise in inflation and the wanton depreciation of the local currency has further been dashed as Fitch Solutions forecasts a further weakening of the local currency throughout the year.

In its latest ‘Ghana’s Private Infrastructure Investment Set for Medium-Term Recovery’ report, Fitch is predicting a 43% and 30% depreciation of the cedi to the US dollar in 2022 and 2023 respectively.

According to the research company, “the currency’s weakness will keep revenue risks elevated for foreign investors reliant on revenue streams in local currency”.

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Fitch also expects Ghana’s inflation rate to remain high in the near term in the face of spiking global food and fuel prices, coupled with the continuing investor concern over the country’s large fiscal deficits which is putting downward pressure on the Cedi.

“Accordingly, we forecast consumer price inflation to average 25% and 15% in 2022 and 2023, respectively.”

Construction industry

Furthermore, Fitch’s report predicts that the cedi’s weakness will add to upward pressures on prices of construction materials from existing supply chain disruptions due to the country’s over-reliance on imports.

“Ghana imports large volumes of construction materials, with domestically produced cement amounting to less than 60% of domestically consumed cement throughout the largest part of the past decade. In 2021, Ghana’s trade deficit for iron and steel products is estimated to have exceeded USD1.2bn, up from an estimated deficit of over USD780mn worth of iron and steel products in 2020,” the report explained.

This, in turn, will further contribute to increased cost of construction materials, project costs and potential investment delays in the near term.

Depreciation Of The Cedi To Slow Down In 2024

In the medium term, Fitch expects inflation to slow down and pressures on the Cedi to reduce significantly in 2024, lifting downward pressures on private sector participation in Ghana’s infrastructure sector.

“Our positive medium-term outlook is further supported by Ghana’s relative long-term political stability in comparison to other regional markets, as well as stable to positive demand forecasts for automobiles, transport and logistics, and general consumption.”

The cedi has since the beginning of the year dropped by at least 35 percent in 2022, according to Bloomberg, making it the world’s worst-performing currency after Sri Lanka’s rupee among 150 economies tracked.

It depreciated by a little over 4% last week, starting the week at GH¢10.10 pesewas to the US dollar.

This situation has drastically shot up the prices of some goods and services, increasing both the cost of doing business and living conditions in the country and has become a major worry to businesses and household consumers.

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