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Cedi more likely to stay solid in 2026 – Courage Boti – Life Pulse Daily

Editor-in-chiefJanuary 30, 20263 Mins read19

Cedi more likely to stay solid in 2026 – Courage Boti – Life Pulse Daily

Cedi Outlook: Stability Expected in 2026, Says GCB Bank’s Courage Boti

Introduction

The Ghanaian cedi is poised for continued stability in 2026, according to Courage Boti, Manager of Macroeconomic Research at GCB Bank PLC. Speaking at the Fourth Annual Forecast Dinner and Charter Recognition Ceremony organized by the Chartered Financial Analyst (CFA) Society Ghana, Boti provided insights into the currency’s trajectory, suggesting that while dramatic appreciation may not continue, the cedi is likely to remain at its fair value. This article explores the factors influencing the cedi’s performance, expert analysis, and practical implications for investors and businesses in Ghana.

Key Points

**Cedi Stability**: Courage Boti predicts the cedi will remain stable in 2026, reflecting its fair value rather than experiencing significant appreciation.
**Macroeconomic Balance**: Improved macroeconomic stability is cited as the primary driver of the cedi's current strength.
**Marginal Depreciation Possible**: Slight depreciation may occur if underlying fundamentals are sustained.
**GSE Commitment**: Abena Amoah, Managing Director of the Ghana Stock Exchange (GSE), emphasized efforts to deepen Ghana's capital markets and encourage more companies to list.

Background

The Ghanaian cedi has experienced significant volatility in recent years, influenced by factors such as inflation, interest rates, and global economic conditions. In 2025, the cedi saw notable appreciation, driven by interventions aimed at stabilizing the currency. However, experts like Courage Boti suggest that such strong gains are unlikely to repeat in 2026. Instead, the focus is on maintaining stability and ensuring the cedi reflects its fair value.

The Ghana Stock Exchange (GSE), under the leadership of Abena Amoah, is also playing a crucial role in supporting economic stability. By advocating for policy reforms, improving infrastructure, and educating investors, the GSE aims to create an enabling environment for businesses to access long-term financing through the capital markets.

Analysis

Factors Supporting Cedi Stability

1. **Macroeconomic Interventions**: The interventions implemented in 2025 have been effective in stabilizing the cedi, according to Boti. These measures have addressed underlying economic imbalances, contributing to a more stable currency environment.

2. **Fair Value Reflection**: The current exchange rate is seen as reflective of the cedi’s fair value, reducing the likelihood of significant appreciation or depreciation in the near term.

3. **Sustained Fundamentals**: If the economic fundamentals that drove the cedi’s appreciation in 2025 are maintained, marginal depreciation may occur, but overall stability is expected.

Challenges and Risks

1. **Global Economic Uncertainty**: External factors such as global inflation, interest rate changes, and geopolitical tensions could impact the cedi’s stability.

2. **Domestic Economic Pressures**: Inflation, fiscal deficits, and external debt remain potential risks to the cedi’s performance.

3. **Market Sentiment**: Investor confidence and market sentiment can influence currency movements, particularly in emerging markets like Ghana.

Practical Advice

For Investors

– **Diversify Portfolios**: Consider diversifying investments across different asset classes to mitigate currency risks.
– **Monitor Economic Indicators**: Keep an eye on key economic indicators such as inflation, interest rates, and trade balances to anticipate potential currency movements.
– **Leverage Financial Instruments**: Use hedging instruments like forward contracts or options to protect against currency volatility.

For Businesses

– **Plan for Stability**: With the cedi expected to remain stable, businesses can plan for more predictable cash flows and pricing strategies.
– **Explore Capital Markets**: Take advantage of the GSE’s efforts to deepen the capital markets by considering listing or accessing long-term financing.
– **Stay Informed**: Regularly review economic updates and expert analyses to stay ahead of potential changes in the currency environment.

FAQ

Q: What factors are driving the cedi’s stability in 2026?

**A:** Improved macroeconomic stability, effective interventions, and the cedi reflecting its fair value are key factors supporting stability.

Q: Will the cedi appreciate further in 2026?

**A:** Courage Boti does not expect significant appreciation like in 2025. The focus is on maintaining stability rather than further gains.

Q: How can businesses benefit from the GSE’s initiatives?

**A:** Businesses can access long-term financing, benefit from policy reforms, and leverage investor education programs to grow and expand.

Q: What risks could impact the cedi’s stability?

**A:** Global economic uncertainty, domestic economic pressures, and market sentiment are potential risks to the cedi’s stability.

Conclusion

The Ghanaian cedi is expected to remain stable in 2026, reflecting its fair value and supported by improved macroeconomic conditions. While significant appreciation is unlikely, the currency’s stability provides a favorable environment for businesses and investors. The Ghana Stock Exchange’s commitment to deepening the capital markets further enhances opportunities for growth and financing. By staying informed and leveraging available resources, stakeholders can navigate the currency environment effectively and capitalize on emerging opportunities.