Currency News [July 17, 2023]

The Cedi was mixed at the week’s open against its three major trading partner currencies on the Open Forex Market (oanda.com) where it rose to build on last week’s gain against the Dollar but remained subdued against the Pound and the Euro. On the Bank of Ghana (BoG) inter-bank trading platform, the Cedi fell across the board, extending its losses against the set of three.

The Cedi’s performance comes as Ghana readies to begin a second round of domestic debt restructuring, targeting holders of Dollar-denominated local debts and holders of Cocoa bills. A press release issued by the finance ministry invited eligible holders to exchange approximately USD 809.0 million of Dollar-denominated domestic notes and bonds for a package of new bonds. The government is hopeful that the successful completion of the debt exchange will be a major stride towards the debt reduction programme to unlock support of the international community.

On the BoG inter-bank trading platform, the Cedi plummeted by 0.02%, 1.98%, and 2.31% to begin the week at trade values of GHS 11.0080, GHS 14.3985, and GHS 12.3677 from last week’s opening trade quotes of GHS 11.0061, GHS 14.1186, and GHS 12.0879 against the Dollar, the Pound, and the Euro respectively. The Pound and the Euro climbed against the Cedi on the back of the market’s expectations of additional rate hikes by both the Bank of England and the European Central Bank as inflation levels in the two regions remain elevated.

On the Open Forex Market (oanda.com), the Cedi appreciated by 0.23% against the Dollar after it was exchanged for GHS 11.4264 at the week’s open from last week’s opening trade value of GHS 11.4523. The Dollar drifted lower against a host of currencies including the Cedi, hurt by softer-than-expected US inflation numbers which raised expectations of an early end to the Fed’s monetary tightening. Against the Pound and the Euro, the Cedi fell by 1.79% and 2.14% to trade at GHS 14.9496 and GHS 12.8363 at the week’s open from last week’s opening trade values of GHS 14.6865 and 12.5672 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 11.0080 indicating a YTD loss of 28.14% on the BoG inter-bank trading platform. It is also presently being quoted at GHS 11.4264 on the Open Forex Market (oanda.com) after opening the year at GHS 10.0825 indicating a YTD loss of 13.33%.