Currency News [February 6, 2023]

The Ghana Cedi opened the week stronger as it rose to pare some of its earlier losses recorded in the year. It gained across the board against the Dollar, the Pound, and the Euro on both the Bank of Ghana (BoG) inter-bank trading platform and the Open Forex Market (oanda.com) for the first time in 2023 in what appears to be a surprise turn of events as Ghana wraps up on its Domestic Debt Exchange Programme this week after undergoing several extensions.

The government is optimistic about achieving its intended 80% subscription rate needed to ensure a successful DDEP as it aims to meet the requirements towards attaining a USD 3.0 billion bailout from the IMF. Market watchers remain hopeful that progress made by the government after several concessions will bolster investor confidence in the Ghanaian economy, thereby strengthening the Cedi’s outlook. The Cedi’s performance has also been supported by reports of easing forex demand after the central bank sold only USD 9.2 million on the spot market.

On the BoG inter-bank trading platform, the Cedi edged up by 0.01%, 2.82%, and 1.44% to begin the week trading at GHS 10.8041, GHS 12.9941, and GHS 11.5946 from last week’s opening trade values of GHS 10.8053, GHS 13.3705, and GHS 11.7636 against the Dollar, the Pound, and the Euro respectively. The Cedi rose marginally against the Dollar after the US Fed reiterated its commitment to keep hiking interest rates, with markets betting that the ensuing economic headwinds will force the Fed into slushing rates as soon as this year.

On the Open Forex Market (oanda.com), the Cedi traded up by 1.14%, 3.84%, and 2.15% from GHS 12.5161, GHS 15.4949, and GHS 13.6085 at last week’s close to open this week trading at GHS 12.3738, GHS 14.9005, and GHS 13.3161 against the Dollar, the Pound, and the Euro respectively. The Pound fell against a host of currencies including the Cedi following what was perceived as a dovish outcome of the Bank of England’s policy meeting last week.

The Cedi was quoted at GHC 8.5903 on the first trading day of the year against the Dollar and is currently being sold at GHS 10.8041 indicating a year-to-date (YTD) loss of 25.77% on the BoG inter-bank trading platform. It is also presently being quoted at GHS 12.3738 on the Open Forex Market (oanda.com) after opening the year at GHS 10.0825 indicating a YTD loss of 22.73%.