Cedi will stabilize against US dollar after successful debt restructuring — Economist

The successful restructuring of Ghana's external debt is expected to help stabilize the local currency against the US dollar in the coming months, according to a renowned economist.

In an interview on Accra-based JoyNews’ PM Express Business Edition on June 27, Dr. Adu Owusu Sarkodie said it often takes time for such developments to be reflected in the market.

He stated "I believe that in July 2024, we will be seeing some positives for the Ghana cedi when it comes to its performance against the dollar."

Dr. Sarkodie maintained "We are expecting the local currency to recovery strongly, after the bondholders sign the agreement on the debt restructuring in the coming weeks."

The economist observed the deal would go a long way in supporting Ghana's economic recovery.

Dr. Sarkodie went on to explain that "This is because we are expecting investors to also respond accordingly to this development and that could help deal with the confidence issues as well."

His comments come as the cedi continues to slide against major foreign currencies on the interbank and forex bureaus markets, selling over GHS15 against the US dollar.

If realized, stabilization predicted by early next month would provide some relief for businesses and the general public from rising import costs.

Much depends on sustained investor confidence going forward, the economist stressed.