Currency News [July 31, 2023]

The Cedi traded higher at the week’s open against its three major trading partner currencies on the Open Forex Market (oanda.com) on the back of improving investor confidence as Ghana resumes processes to restructure its remaining public debt. A successful completion of the debt restructuring exercise is crucial towards unlocking the international community’s support, a critical component of Ghana’s programme with the International Monetary Fund (IMF).

The finance minister commenting on the performance of the local unit at this week’s mid-year fiscal policy review of the 2023 budget statement noted that the Cedi impressively depreciated by a slower margin between February and July as some macroeconomic variables began to improve. The mid-year budget review saw the revisions of some macroeconomic variables with the overall real GDP growth rate pegged at 1.5% down from 2.8%. Although the budget review did not clearly lay out the government’s policies to stabilize the Cedi in the second half of the year, the Cedi is expected to hold steady against its peers under the IMF-supported programme.

On the Bank of Ghana (BoG) inter-bank trading platform, the Cedi was little changed against the Dollar after it traded at GHS 11.0089 at this week’s open from last week’s opening trade value of GHS 11.0091. The Dollar fell marginally against the Cedi after US inflation in June recorded its slowest growth in more than two years, easing pressures on the Fed to continue raising rates. Against the Pound, the Cedi traded down by 0.21%, opening the week at a trade value of GHS 14.1574 from last week’s trade value of GHS 14.1280. Against the Euro, the Cedi surged by 0.52% from last week’s opening trade quote of GHS 12.1972 to open this week at a trade value of GHS 12.1336.

On the Open Forex Market (oanda.com), the Cedi soared by 1.56%, 1.47%, and 2.44% to open the week at trade values of GHS 11.4380, 14.6997, and GHS 12.6001 from last week’s opening trade quotes of GHS 11.6189, GHS 14.9190, and GHS 12.8891 against the Dollar, the Pound, and the Euro respectively. The Cedi rose against the Pound despite a Bank of England rate hike last week where inflation continued to prevail above the central bank’s target.

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 11.0089 indicating a YTD loss of 28.16% on the BoG inter-bank trading platform. It is also presently being quoted at GHS 11.4380 on the Open Forex Market (oanda.com) after opening the year at GHS 10.0825 indicating a YTD loss of 13.44%.