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Election spending to make cedi end ¢6.45 against dollar in 2021 – Report

Economic and finance think tank, Center for Economics Finance and Inequality Studies CEFIS’ has projected that the cedi will end this year at ¢6.45 to a dollar.

This was contained in CEFIS recent study on the performance of the local currency in its cedis Outlook Report

The think tank also projected that the cedi will hit ¢6.24 in the middle of 2021.

According to the think tank, the projection is based on the fact that the expected rebound of the economy will not be strong enough to support the stability of the cedi for 2021.

It indicated that “the immediate effect of the COVID-19 pandemic will linger beyond 2021, which will also affect the cedi’s firm stability going forward”.

CEFIS also noted that some financial commitments that the government made in the run-up to the 2020 election will negatively impact the fortunes of the cedi in 2021.

“This excess liquidity without a corresponding output will destroy most of the gains especially the exchange rate stability in 2020, made in the prior election year.”

The think tank also believes that the government’s finances might come under some pressure this year, as most debts are expected to mature.

Source: Ghanaweb.com

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