Currency News [March 21, 2022]

Measures to cool off the sharp decline in the value of the Cedi and to restore confidence in the Ghanaian economy began with a monetary policy rate hike by 250 basis points to 17.0%, the highest in more than three years. The move among a host of monetary actions is expected to boost investor sentiments in the local economy.

The government is similarly expected to announce a number of policies to supplement the monetary actions of the central bank in a move to address the rising cost of living, the strong pick-up inflation, and the sharp depreciation of the local currency. These measures would include a cut in key government expenditures whilst exploring avenues to boost revenue. The government has also hinted at plans to boost forex liquidity to stabilize the Cedi.

On the Bank of Ghana (BoG) inter-bank trading platform, the Cedi traded at GHS 7.1161, GHS 9.3932, and GHS 7.8591 per the Dollar, the Pound, and the Euro at the start of the week from last week’s opening trade figures of GHS 7.0335, GHS 9.1858, and GHS 7.7276 representing a depreciation of 1.17%, 2.26%, and 1.70% respectively. The Dollar climbed up against a host of currencies including the Cedi after the US Fed delivered its much-anticipated rate hike whilst leaving room for an additional 50 basis points hike in the near term.

On the Open Forex Market (oanda.com), the Cedi continued to suffer losses as it opened the week with a depreciation of 2.25%, 3.50%, and 3.32% after opening the week at GHS 7.3626, GHS 9.6932, GHS 8.1272 from last week’s opening quotes of GHS 7.1868, GHS 9.3653, and GHS 7.8660 against the Dollar, the Pound, and the Euro respectively. The Pound added to its earlier gains against the Cedi after the Bank of England lifted UK rates for the second consecutive time by 0.25% to 0.75%.

The Cedi was quoted at GHC 6.0091 on the first trading day of the year against the Dollar and is currently being sold at GHS 7.1161 indicating a year-to-date (YTD) loss of 18.42% on the BoG inter-bank trading platform. It is also presently being quoted at GHS 7.3626 on the Open Forex Market (oanda.com) after opening the year at GHS 6.2112 indicating a YTD loss of 18.54%.