Cedi Expected to Stabilize Against Dollar from July Following Debt Restructuring Deal – Dr. Adu Sarkodie
Economist Dr. Adu Owusu Sakodie highlighted that there typically exists a lag period for the market to react to news. “I anticipate that by July 2024, we will witness positive developments for the Ghana cedi in its performance against the dollar,” he expressed optimistically during an interview on PM Express Business Edition with host George Wiafe on June 27, 2024.
Several analysts have attributed the recent depreciation of the cedi to delays in finalizing the debt restructuring deal. “We expect a strong recovery of the local currency once bondholders sign the agreement on debt restructuring in the coming weeks,” he asserted.
Regarding the broader impact on the economy, Dr. Sakodie observed that this development will significantly contribute to Ghana’s economic recovery. “Investors are expected to respond positively, which could alleviate confidence issues,” he remarked. He believes that the deal will provide the government with fiscal space to redirect resources towards critical economic sectors.
Dr. Clement Osei Amoako, President of the Ghana National Chamber of Commerce and Industry (GNCCI), also welcomed the progress made in restructuring the external debt. “This will restore investor confidence in the economy, given the challenges of the past two years,” he noted.
Commenting on the implications for businesses, particularly manufacturers, Dr. Amoako described the development as a significant relief. “We anticipate a positive response from the Ghana cedi, as we have already observed marginal stability and hope for its continuation,” he stated.
He emphasized the importance of the government implementing structures to ensure fiscal prudence post-debt restructuring. “While we are concerned about past developments, we trust that the government has learned valuable lessons for managing the economy,” he concluded.
