Currency News [September 4, 2023]

The Cedi opened the week nursing losses against its three major trading partner currencies on the Open Forex Market (oanda.com) despite a series of positive events which is expected to boost investor confidence. On the Bank of Ghana (BoG) inter-bank trading platform, the Cedi was mixed against its three major trading partner currencies where it declined against the Dollar and the Pound but maintained its strong footing against the Euro to add onto previous weeks’ gains against the single currency.

The Cedi’s performance comes after the Government announced last week the successful completion of its alternative offer for the pension fund as well as the Dollar-denominated bonds exchanges with participation rates of 95% and 92% respectively. The successful completion of Phase II of the Domestic Debt Exchange Programme (DDEP) boosts Ghana’s chances of expediting its economic recovery. This development will also be expected to strengthen Ghana’s stance ahead of the review of its programme with the International Monetary Fund (IMF).

On the BoG inter-bank trading platform, the Cedi weakened by 0.07% and 0.30% to open the week with trade values of GHS 11.0262 and GHS 13.9151 from last week’s opening trade quotes of GHS 11.0187 and GHS 13.8737 against the Dollar and the Pound respectively. Against the Euro, the Cedi traded higher by 0.07% to open this week trading at GHS 11.8993 from last week’s opening trade value of GHS 11.9077. The Euro weakened against a basket of currencies after data showed that inflation in the Eurozone steadied while German unemployment rate rose more than expected, increasing bets that the European Central Bank may soon pause its policy hikes.

On the Open Forex Market (oanda.com), the Cedi plunged by 0.50%, 0.71%, and 0.33% to trade at GHS 11.4496, GHS 14.4515, and GHS 12.3581 from last week’s opening trade quotes of GHS 11.3930, GHS 14.3498 and GHS 12.3176 against the Dollar, the Pound, and the Euro respectively. The Dollar soared despite mixed US jobs data which supported bets that the Fed will hold rates steady this month.

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 11.0262 indicating a YTD loss of 28.36% on the BoG inter-bank trading platform. It is also presently being quoted at GHS 11.4496 on the Open Forex Market (oanda.com) after opening the year at GHS 10.0825 indicating a YTD loss of 13.56%.