Currency News [August 7, 2023]

The Ghana Cedi traded higher against its three major trading partner currencies on both the Bank of Ghana (BoG) inter-bank trading platform and on the Open Forex Market (oanda.com) at the week’s open in what appears to be a surprising turn of events after the Cedi posted a similar performance last week. The Cedi’s recent recovery comes as Ghana resumes its domestic debt restructuring programme ahead of the first review of its programme with the International Monetary Fund (IMF).

The government is seeking to restructure USD 809 million Dollar-denominated debt whilst actively engaging corporate trustees in an attempt to bring on-board pension funds into the debt restructuring programme. A successful completion of the programme is expected to help improve investor sentiments with Fitch stating that it will “assign a LTFC IDR based on a forward-looking assessment of its willingness and capacity to honour its foreign-currency debt” once Ghana reaches an agreement with private creditors.

On the BoG inter-bank trading platform, the Cedi ticked higher by 0.01%, 0.73%, and 0.26% to trade at GHS 11.0077, GHS 14.0535, and GHS 12.1026 at the week’s open from last week’s opening trade quotes of GHS 11.0089, GHS 14.1574, and 12.1336 against the Dollar, the Pound, and the Euro respectively. The Dollar weakened against a set of currencies hurt by disappointing US non-farm payroll data amidst a downgrade of the US economy by Fitch.

On the Open Forex Market (oanda.com), the Cedi soared by 1.93%, 2.65%, and 2.11% from last week’s opening trade quotes of GHS 11.4380, GHS 14.6997, and GHS 12.6001 to open the week at trade values of GHS 11.2178, GHS 14.3100, and GHS 12.3343 against the Dollar, the Pound, and the Euro respectively. The Pound fell against a host of currencies after the market interpreted the recently announced smaller-than-anticipated rate hike as a signal that the Bank of England is considering ending its tightening cycle.

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 11.0077 indicating a YTD loss of 28.14% on the BoG inter-bank trading platform. It is also presently being quoted at GHS 11.2178 on the Open Forex Market (oanda.com) after opening the year at GHS 10.0825 indicating a YTD loss of 11.26%.