Currency News [April 19, 2022]

The Ghana Cedi showed signs of traction after it began the week posting gains against its three major trading partner currencies on the Bank of Ghana (BoG) inter-bank trading platform as calm is restored on the currency front. The local currency has over the past few days held steady against the Dollar, the Pound, and the Euro as measures outlined by the government to revamp the economy lifts investor confidence and forex liquidity improves.

A recently held forex forward rates auction showed easing Dollar demand as the bid cover ratio declined from a peak of 3.96 times in March to 3.40 times despite the offer amount being lowered from USD 75.0 million to USD 50.0 million. Total bids submitted came in at USD 169.75 million at the recent auction which compares to USD 272.50 million worth of bids submitted over the same period last month, depicting an easing demand for forex.

On the BoG inter-bank trading platform, the Cedi was little changed against the Dollar as it moved marginally from GHS 7.1161 at last week’s open to commence the week at GHS 7.1160. The Cedi held the Dollar after inflation in the US peaked at 8.5%, the fastest annual increase since 1981, cementing a rapid pace of tightening by the Fed. Against the Pound and the Euro, the Cedi was up by 0.36% and 0.97% after it was quoted at GHS 9.2472 and GHS 7.6753 at the start of the week from last week’s opening quotes of GHS 9.2808 and GHS 7.7501 respectively.

On the Open Forex Market (oanda.com), the Cedi slid by 0.84% and 0.81%, failing to hold on to the previous weeks’ gains against the Dollar and the Euro. It was traded at GHS 7.6452 and GHS 9.9599 at the start of the week against the last week’s opening quotes of GHS 7.5817 and GHS 9.8766 against the Dollar and the Euro respectively. It maintained its strong footing against the Euro with a gain of 0.07% from GHS 8.2575 at last week’s open to GHS 8.2516 this week. The single currency was weighed down by the ongoing war in Ukraine, with Russia launching a new offensive in the east of the country.

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 7.1160 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 7.6452 on the Open Forex Market (oanda.com) after opening the year at GHS 6.2112 indicating a YTD loss of 23.09%.