Cedi Could Start Depreciating Again -Fitch

Carmen Altenkrich 
The Ghana cedi could start depreciating again if Government does not quickly reach an agreement with the IMF, global rating agency Fitch has disclosed.

The Ghana cedi, early this year, recorded one of its worst depreciations since its re-denomination.

Speaking to investors across the world from London, Director at FITCH, Carmen Altenkrich explained why the cedi could once again come under pressure.

According to her, there is increasing investor jitteriness and investors cannot wait longer than the January 2015 deadline as the potential starting point for the programme outlined by President Mahama.

'If Government fails to quickly reach a programme with IMF whilst the year progresses, it will definitely affect the currency,' she noted.

A month after the new foreign exchange rules were introduced, the cedi's rate of depreciation slowed down from 8.1 percent to 4.9 percent.  It however increased in the second month by 6.2 percent, dropped to 3.6 percent in the third month, worsened to 4.6 percent in the fourth and slowed down to 2.7 percent by July 4th.

The dollar increased to GH¢3.19 on Friday from 3.18 in November of 2014.

The local currency averaged 1.74 from 2007 until 2014, reaching an all-time high of 3.88 in August of 2014 and a record low of 0.90 in July of 2007.

 - Myjoyonline