Currency News [July 10, 2023]

The Cedi nursed losses across the board at the week’s open on the Bank of Ghana (BoG) inter-bank trading platform, failing to sustain its recent momentum against its three major trading partner currencies. The Cedi, along with other emerging market currencies continue to be pressured following a cycle of rate hikes being carried out by major central banks. The Cedi, however, opened the week mixed on the Open Forex Market (oanda.com) where it rose against the greenback but fell against the Pound and the single currency.

The Cedi’s performance this week comes ahead of three key economic events which are expected to impact the Cedi’s trajectory in the second half of the year. These events include the announcement of the inflation rate for June and a monetary policy decision that will reveal the central bank’s renewed stance against inflation. Later in the month, the finance minister will be expected to present the mid-year budget review where the market will be on the lookout for strategies the government intends to adopt to strengthen the local currencies.

On the BoG inter-bank trading platform, the Cedi plunged by 0.03%, 1.07%, and 0.65% to open the week at trade values of GHS 11.0061, GHS 14.1186, and GHS 12.0879 from last week’s opening trade values of GHS 11.0024, GHS 13.9686, and 12.0098 against the Dollar, the Pound, and the Euro respectively. The Pound rose against a cross-section of currencies including the Cedi after UK wage growth hit a joint record high, heaping pressure on the Bank of England to continue its rate hikes to bring inflation under control.

On the Open Forex Market (oanda.com), the Cedi went up by 0.36% to begin the week at a trade value of GHS 11.4523 from GHS 11.4940 quoted at last week’s open. The Dollar weakened against a host of currencies after several Federal Reserve officials said that while the Fed will still likely need to raise rates, the end to its current policy tightening is nearing. Against the Pound and the Euro, the Cedi fell by 0.69% and 0.25% to begin the week at trade values of GHS 14.6865 and GHS 12.5672 from last week’s opening trade values of GHS 14.5843 and GHS 12.5359 respectively.

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 11.0061 indicating a YTD loss of 28.12% on the BoG inter-bank trading platform. It is also presently being quoted at GHS 11.4523 on the Open Forex Market (oanda.com) after opening the year at GHS 10.0825 indicating a YTD loss of 13.59%.