The woes of the Ghana Cedi are likely to persist this year against the US Dollar should government relent in ensuring the country’s current account deficit reaches a sustainable level, the World Bank has cautioned.

The warning was contained in the World Bank’s Global Economic Prospects report for January 2023.

“Large current account deficits are likely to keep currencies under pressure in several countries, adding to inflation and external vulnerabilities (Gambia, Ghana)," the report noted.

Despite cautioning Ghana and other countries, the World Bank report called on government to adopt stringent measures aimed at properly managing the current account deficit in the 2023 fiscal year.

The World Bank also stressed the implementation of policies targeted at boosting exports to narrow the current account deficit, while controlling excessive importation.

It noted that the implementation of these measures and policies must check rising inflationary pressures which could peak in the coming months thereby negatively impacting the local currency.

Meanwhile, the cedi has begun to experience some marginal depreciation against the US dollar since the start of 2023.

The currency is selling for around GH¢12.45 to $1 on the forex market while going for GH¢9.00 on the Bank of Ghana interbank forex market.

As of January 12, 2023, the British Pound is selling at GH¢14.70 on the forex retail market while the Euro is going for GH¢12.80 on the forex retail market.


MA/FNOQ