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Currency News [July 24, 2023]

The Ghana Cedi opened the week mixed against its three major trading partner currencies ahead of the presentation of the mid-year budget review later in the week where the market will be on the lookout for strategies the government intends to adopt to maintain the Cedi’s recent stability. The Cedi traded lower against the Dollar but rose to post gains against the Pound and the Euro on the Bank of Ghana (BoG) inter-bank trading platform. On the Open Forex Market (oanda.com), the local unit rose against the Pound but failed to record gains against the Pound and the Euro.

After undergoing a sharp depreciation in the first quarter of the year, the Cedi had been mostly held steady against some of its peers supported by improving foreign exchange liquidity on the market after Ghana reached an agreement with the IMF, giving the BoG the drive to intervene in the spot market. The Cedi’s performance this week comes amid a 50 basis points hike in the policy rate on the back of renewed pressures on consumer prices.

On the BoG inter-bank trading platform, the Cedi lost marginally by 0.01% to open the week at a trade value of GHS 11.0091 from last week’s opening trade quote of GHS 11.0080. Against the Pound and the Euro, the Cedi soared by 1.88% and 1.38% from last week’s opening trade values of GHS 14.3985 and GHS 12.3677 to open this week at trade quotes of GHS 14.1280 and GHS 12.1972 respectively. The Euro struggled against a set of currencies as evidence of a slowdown in the Eurozone emerges.

On the Open Forex Market (oanda.com), the Cedi declined by 1.68% and 0.41% against the Dollar and the Euro, having opened the week at trade values of GHS 11.6189 and GHS 12.8891 from last week’s opening trade values of GHS 11.4264 and GHS 12.8363 respectively. Against the Pound, the Cedi nudged up by 0.20% to trade at GHS 14.9190 at the week’s open from last week’s open trade value of GHS 14.9496. The Pound fell against a basket of currencies after UK inflation rate fell to its slowest in more than a year, casting doubts about the future of interest rate hikes.

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 11.0091 indicating a YTD loss of 28.16% on the BoG inter-bank trading platform. It is also presently being quoted at GHS 11.6189 on the Open Forex Market (oanda.com) after opening the year at GHS 10.0825 indicating a YTD loss of 15.24%.

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