By Franklin ASARE-DONKOH
The World Bank’s January 2022 Global Economic Prospects report has cautioned that the Ghana Cedi may continue to come under pressure in 2023 against the U.S. dollar if efforts are not directed at controlling the country’s current account deficit to a sustainable level.
The Ghana Cedi was on January 10, 2023, selling at ¢12 to the US dollar in the retail or forex market, following days of sustained stability.
This was about a 0.86% loss in value since the beginning of the year.
The report further said; “Large current account deficits are likely to keep currencies under pressure in several countries, adding to inflation and external vulnerabilities (Gambia, Ghana).”
The World Bank’s report encouraged the government to take extra measures to manage its current account deficit in 2023.
It further pointed out the need to institute policies that will boost exports to narrow the current account deficit, while controlling imports.
It explained that introducing these actions together with policies aimed at checking inflation in the coming months will help stabilise the economy and deal with some of the threats that will impact negatively on the local currency.
