Currency analysts are projecting that the cedi will gain more value in the third and fourth quarter of this year as government awaits more dollars to inject into the economy.
According to currency analyst, Sammy Ampah the coming in of the second tranche of the IMF balance of payment support, as well as inflows from the cocoa syndicated loan as well as the 1 billion Eurobond will to a large extent ensure the stability of the local currency.
‘’From the third to the fourth quarter of 2015 we could have the cedi seemingly gaining some value due to the expected inflows and all these are just indicators of a clear stability push that can sustain the currency. ‘’
Prior to the appreciation of the local currency it had depreciated in excess of 26 percent against the dollar this year, however currency Analyst Sammy Ampah tells Citi Business News, the weekly injection of dollars by the central bank and expected inflows are just short term remedies to shore up the currency.
On the long term, Sammy Ampah believes the Bank of Ghana must step up its fiscal discipline efforts to sustain the current performance of the cedi.
He is of the view that , ‘’the 0.3 percent deficit recorded in the first quarter of 2015 is an improvement of our high budgetary deficit records but that notwithstanding there is an indication of government’s inability to sustain that successes it has chalked as we enter into an election year 2016.’’
According to him, the challenge lies with government to show that ‘’indeed it has fiscal prudence and fiscal management practices that is sustainable.’’