Currency News [April 3, 2023]

The Cedi began the week firmer against its three major trading partner currencies on the Open Forex Market (oanda.com) as recent developments helped to improve the Cedi’s outlook. Progress made in Ghana’s quest to secure a USD 3.0 IMF bailout continues to boost investor sentiments towards the domestic economy with the local currency ending March with a year-to-date (YTD) depreciation of 17.29% which compares with a YTD performance of -27.28% in February and -25.10% in January on the Open Forex Market.

A host of recent developments including easing corporate forex demand, a policy rate hike, the on-going Gold-for-Oil policy and the central bank’s intervention in the spot market and the forex auction for bulk oil distributors helped stalled the sharp decline in the value of the local unit against its majors. Analysts also assert that the passage of the three controversial financial bills which are expected to shore up the country’s domestic tax revenue by GHS 4.0 billion will aid the country as it tries to achieve fiscal consolidation and subsequently improve the sovereign’s chances towards securing an early IMF board level agreement.

On the Bank of Ghana (BoG) inter-bank trading platform, the Cedi was mixed after recording its first weekly gain in more than 5 weeks against the Dollar, whilst extending its losses against the Pound and the Euro. The Cedi went up by 0.02% at the week’s opening to trade at GHS 11.0172, from last week’s opening trade quote of GHS 11.0197 against the Dollar. Against the Pound and the Euro, the Cedi crumbled by 1.01% each to open the week at trade values of GHS 13.6646 and GHS 11.9992 from last week’ opening trade values of GHS 13.5278 and GHS 11.8790 respectively. The Pound and the Euro rose against the Cedi as inflation pressures in Europe showed no signs of slowing down.

On the Open Forex Market (oanda.com), the Cedi gained massively, recording gains of 5.73%, 5.01%, and 5.05% from last week’s trade figures of GHS 12.2555, GHS 15.0297, and GHS 13.2106 to open the new week at trade values of GHS 11.5528, GHS 14.2771, and GHS 12.8812 against the Dollar, the Pound, and the Euro respectively. The Dollar showed signs of weakness against some peers as data showed the U.S. economy continued to slow with declines in key sectors, reviving bets that the end of US rate-hiking is near.

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 11.0172 indicating a YTD loss of 28.25% on the BoG inter-bank trading platform. It is also presently being quoted at GHS 11.5528 on the Open Forex Market (oanda.com) after opening the year at GHS 10.0825 indicating a YTD loss of 14.58%.