Currency News [December 5, 2022]

The Ghana Cedi responded favourably to the announcement of a Domestic Debt Exchange Programme (DDEP) made by Ghana’s Finance Minister over the weekend which investors interpreted as a step towards securing an IMF bailout. The Cedi traded higher against its three major trading partner currencies on the Open Forex Market (oanda.com) after details of the DDEP were publicized. On the Bank of Ghana (BoG) inter-bank trading platform, the Cedi gained against the Dollar, adding onto previous week’s marginal gain against the greenback.

The government is optimistic that the DDEP will create a more comprehensive strategy to restore debt and financial sustainability as it aims to secure a USD 3.0 billion bailout from the IMF. Already, the government is hopeful that it will reach a Staff-Level Agreement in the shortest possible time with the IMF for a programme aimed at bringing the economy back on track.

On the BoG inter-bank trading platform, the Cedi traded higher by 0.01% against the Dollar after beginning the week being quoted at GHS 13.1100 as against last week’s opening quote of GHS 13.1114. The Dollar declined marginally against the local unit on growing expectations that the US Fed is set to slow the pace of its rate hikes, likely resulting in a soft landing for the US economy. Against the Pound and the Euro, the Cedi dipped by 1.43% and 1.34% to trade at GHS 16.0112 and GHS 13.8123 at the week’s open from last week’s opening quotes of GHS 15.7848 and GHS 13.6299 respectively.

On the Open Forex Market (oanda.com), the Cedi gained across the board, edging up by 3.50%, 1.72%, and 2.10% from GHS 14.6831, GHS 17.6763, and GHS 15.2550 at last week’s opening to trade at GHS 14.1695, GHS 17.3715, and GHS 14.9349 at this week’s open against the Dollar, the Pound, and the Euro respectively. The Cedi traded higher against the Euro after data showed Eurozone inflation slowed by more than expected in November, giving impetus for a slowdown in the bloc’s rate hikes.

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 13.1100 indicating a year-to-date (YTD) loss of 118.17% on the BoG inter-bank trading platform. It is also presently being quoted at GHS 14.1695 on the Open Forex Market (oanda.com) after opening the year at GHS 6.2112 indicating a YTD loss of 128.13%.