Currency News [March 28, 2022]

After a slew of fiscal measures aimed at getting the Ghanaian economy on track was announced by the Finance Minister, the Cedi responded positively on the Bank of Ghana’s (BoG) inter-bank trading platform where the Cedi traded firm against the Dollar, the Pound, and the Euro. Off the inter-bank market, the Cedi struggled to maintain gains made following the Minister’s press statement. The Cedi traded south on the Open Forex Market (oanda.com) as investors examined the impact of the government’s expenditure cuts and revenue-enhancing measures on the economy.

Outlining strategies to revamp the Cedi, the Minister revealed that the government had begun to conclude on an external financing arrangement of up to USD 2.00 billion which will be used to shore up the supply of forex to boost liquidity. Additionally, the finance ministry is to work with the central bank to review the foreign exchange retention policy to ensure multinationals retain foreign exchange earnings.

On the BoG inter-bank trading platform, the Cedi was little changed against the Dollar as it moved slightly from GHS 7.1161 at last week’s open to commence this week at GHS 7.1162. Against the Pound and the Euro, the Cedi recorded its first weekly gain in nearly two months as it appreciated by 0.79% and 0.49% to open the week trading at GHS 9.3186 and 7.8209 from last week’s opening quotes of GHS 9.3932 and GHS 7.8591 respectively. The ongoing Russia-Ukraine war continued to weigh on the single currency as the bloc is seen suffering the most significant economic impact of the conflict.

On the Open Forex Market (oanda.com), the Cedi plummeted by 3.54%, 3.20%, and 2.93% to open the week trading at GHS 7.6233, 10.0037, and GHS 8.3653 from last week’s open trade values of GHS 7.3626, GHS 9.6932, and GHS 8.1272 against the Dollar, the Pound, and the Euro respectively. Interest rate hike expectations continue to help lift the Dollar against a basket of currencies including the Cedi.

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 7.1162 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 7.6233 on the Open Forex Market (oanda.com) after opening the year at GHS 6.2112 indicating a YTD loss of 22.73%.