Currency News [August 14, 2023]

The Cedi began the week extending its impressive run against some of its major trading partner currencies on both the Bank of Ghana (BoG) inter-bank trading platform and the Open Forex Market (oanda.com) where it built on previous gains against the Pound and the Euro. The local unit, however, failed to sustain its momentum against the Dollar as it traded down at this week’s open to erase gains chalked last week. Growing fears of an economic slowdown in the world’s second-largest economy boosted the appetite for safe havens, favouring the greenback.

The Cedi’s performance comes after the latest inflation reading affirmed the presence of upward price pressures on consumer goods and services, a phenomenon which is likely to derail the fiscal consolidation drive and threaten the ongoing public debt restructuring.

On the BoG inter-bank trading platform, the Cedi lost by 0.02% against the Dollar after opening the week at a trade value of GHS 11.0095 from last week’s opening trade value of GHS 11.0077. The Dollar’s strength was reinforced by stronger than anticipated US consumer and producer inflation readings which revived hopes that the Fed may continue with its rate-hiking stance. Against the Pound and the Euro, the Cedi edged up by 0.54% and 0.64% to trade at GHS 13.9777 and GHS 12.0248 at the week’s open from last week’s opening trade values of GHS 14.0535 and GHS 12.1026 respectively.

On the Open Forex Market (oanda.com), the Cedi went down by 0.56% against the Dollar from GHS 11.2178 at last week’s open to trade at GHS 11.2811 at this week’s open. Against the Pound and the Euro, the Cedi appreciated by 0.02% and 0.07% to trade at GHS 14.3075 and GHS 12.3258 at this week’s open from last week’s opening trade quotes of GHS 14.3100 and GHS 12.3343 respectively. The Euro was weighed down by hints that the bloc could pause its year-long rate-hiking campaign as recent data from the bloc’s largest economy shows that the Eurozone could be pushed into a recession.

 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 11.0095 indicating a YTD loss of 28.16% on the BoG inter-bank trading platform. It is also presently being quoted at GHS 11.2811 on the Open Forex Market (oanda.com) after opening the year at GHS 10.0825 indicating a YTD loss of 11.89%.