Currency News [September 18, 2023]

The Cedi began the week mixed against its three major trading partner currencies on both the Bank of Ghana (BoG) inter-bank trading platform and the Open Forex Market (oanda.com) where the local currency maintained its strong footing against the Pound and the Euro but failed to garner some weight against the Dollar. The Cedi’s performance comes amidst a resurgence of demand pressures as traders seek forex for restocking ahead of the festive season.

Despite the recent success achieved by the government in the second phase of the Domestic Debt Exchange Programme where the offer achieved over 95% success rate, the Cedi continue to remain volatile as risks to the economic outlook persist. A recent report by the International Monetary Fund (IMF) put Ghana as a highly indebted country under the Poverty Reduction and Growth Trust (PRGT). This, analysts believe poses significant threats to the Cedi’s outlook.

On the BoG inter-bank trading platform, the Cedi declined by 0.17% to trade at GHS 11.0778 at the week’s open from last week’s opening trade value of GHS 11.0586 against the Dollar. The Dollar extended its gains against the local unit buoyed by resilient US growth data, fuelling a rebound in the greenback despite concerns over a US government shutdown. Against the Pound and the Euro, the Cedi climbed up by 0.77% and 0.33% from GHS 13.8399 and GHS 11.8848 at last week’s open to begin this week at trade values of GHS 13.7332 and GHS 11.8451 respectively.

On the Open Forex Market (oanda.com), the Cedi plummeted by 0.39% to open the week trading at GHS 11.5076 from last week’s opening trade quote of GHS 11.4631 against the Dollar. Against the Pound and the Euro, the Cedi traded up by 0.62% and 0.18%, haven traded at GHS 14.2586 and GHS 12.2855 at this week’s open from last week’s opening trade quotes of GHS 14.3471 and GHS 12.3074 respectively. The Euro nursed losses against a set of currencies including the Cedi as investors shifted their attention to the European Central Bank’s signaling the potential end to its rate hiking 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 11.0778 indicating a YTD loss of 28.96% on the BoG inter-bank trading platform. It is also presently being quoted at GHS 11.5076 on the Open Forex Market (oanda.com) after opening the year at GHS 10.0825 indicating a YTD loss of 14.13%.