Currency News [June 26, 2023]

The Cedi traded higher against its three major trading partner currencies at the week’s open on the Bank of Ghana (BoG) inter-bank trading platform buoyed by easing demand pressures for forex and as the central bank’s continuous intervention in the spot and forward markets sustains the local unit. The central bank recently injected a whooping USD 1.3 million according to reports to support the Cedi whilst it plans to auction an additional USD 20.0 million to bulk oil distributors later this week.

The Cedi’s momentum as witnessed on the BoG inter-bank trading platform could not however be replicated on the Open Forex Market (oanda.com) as the Cedi continued its free fall against the set of its three major trading partner currencies. The Cedi is expected to claw back some of its weaknesses going into the second half of the year as Ghana readies to begin restructuring the external component of its public debt stock ahead of the first review of Ghana’s programme with the International Monetary Fund later this year.

On the BoG inter-bank trading platform, the Cedi was little changed against the Dollar after it rose marginally to open the week at a trade value of GHS 10.9952 from last week’s opening trade value of GHS 10.9953. Against the Pound and the Euro, the Cedi soared by 0.61% and 0.13% to trade at GHS 13.9848 and GHS 11.9969 at the week’s open from last week’s opening trade values of GHS 14.0707 and GHS 12.0129 respectively. The Pound fell against a host of currencies including the Cedi over growing concerns that the UK economy could slip into recession after the Bank of England last week delivered an oversized rate hike in response to persistent inflation.

On the Open Forex Market (oanda.com), the Cedi plunged by 0.73%, 0.08%, and 0.54% to open the week at trade values of GHS 11.4866, GHS 14.6151, and GHS 12.5290 from last week’s opening trade values of GHS 11.4038, GHS 14.6030, and GHS 12.4612 against the Dollar, the Pound, and the Euro respectively. The Dollar was boosted by its safe-haven appeal following worries over a slowing global economy amidst aggressive monetary tightening by multiple central banks.

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 10.9952 indicating a year-to-date (YTD) loss of 28.00% on the BoG inter-bank trading platform. It is also presently being quoted at GHS 11.4866 on the Open Forex Market (oanda.com) after opening the year at GHS 10.0825 indicating a YTD loss of 13.93%.