Despite soured investor attitude toward emerging market assets, the Ghana cedi’s current account stability will minimise any downside impact – Fitch Solutions 

Compiled By: Prince Henry Danquah, Bora Capital Advisors Ltd

Fitch Solutions says the current account stability will mitigate any downside pressure on the Ghana cedi, despite souring investor sentiment towards Emerging Market assets.

According to the UK-based firm, strong export receipts will continue to bolster Ghana’s already robust forex reserves, which have risen to US$14.4 billion, the equivalent of roughly six months of imports.

That said, it said policymakers are likely to tolerate a modest depreciation bias to support export competitiveness, particularly as the cedi appears overvalued on a real effective exchange rate basis.

“Overall, we expect broad currency stability with a slight depreciation bias, with the cedi ending the year at GH¢11.4 to one US dollar.

Source: newsthemegh.com