Cedi Depreciation Pegged At GH¢4.2 By End Of 2015 – StanChart Report

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Standard Chartered Bank is predicting a GH¢4.20 rate depreciation against the U.S dollar by the end of year.

The prediction was contained in a report issued by the research wing of the bank responsible for Africa.

The report authored by the bank’s head of Africa research, Razia Khan, gives the outlook for 8 economics in Africa, including Ghana, Nigeria and South Africa.

Razia Khan has maintained that the 4 Ghana cedis 20 pesewas could be revised if Ghana secures a program with the IMF.

She also notes that an IMF program will be key to maintaining investor confidence in the economy going forward.

The report notes although this is an end of year target by the bank, it also expects some marginal pressure on the cedi in the early months of this year because of moves by some companies to restock mainly by importation.

However, currency analyst, Kofi Ampah, has argued that the pressure being experienced is just normal and that the local currency will bounce back to winning ways soon.

Some analysts also see the report as similar to predictions about 2014 by various experts which never materialized.

The Standard Chartered bank report is also predicting a 5.4 percent economic growth for the country by end of year.

This figure is far higher than government’s own projection of 3.9 percent.

Standard Chartered also adds that Ghana’s crude oil import bill will reduce substantially to between 300 and 500 dollars from almost 1 billion when that Gas infrastructure project is completed.

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