Currency News [October 16, 2023]

Fears of rising US interest rates, following a stronger-than-expected US inflation reading for September, kept investor sentiments towards emerging market currencies and risky assets largely negative with the Cedi seen losing grounds against its major international trading partner currencies. The Cedi’s woes together with other riskier currencies were also worsened by concerns of escalating Middle East conflict which increased the Dollar’s safe-haven appeal.

The Cedi accordingly opened the week weighed down by the strengthening of major international currencies as the local unit trembled against the Dollar, the Pound, and the Euro on the Bank of Ghana (BoG) inter-bank trading platform. The Cedi’s performance comes amidst a resurgence of demand pressures for forex by importers ahead of the festive season coupled with the key restraint that Ghana has to overcome prior to receiving the next tranche of USD 600.0 million under the sovereign’s programme with the IMF.

On the BoG inter-bank trading platform, the Cedi went down by 0.81%, 0.85%, and 0.90% to begin the week trading at GHS 11.3251, GHS 13.8222, and GHS 11.9446 from last week’s opening trade values of GHS 11.2343, GHS 13.7059, and GHS 11.8379 against the Dollar, the Pound, and the Euro respectively. The Dollar continued its roller-coast ride against major international trading partner currencies as well as emerging market currencies on the back of safe-haven buying driven by the escalating Middle East conflict.

On the Open Forex Market (oanda.com), the Cedi dipped by 0.20% and 0.08% to trade at GHS 11.7819 and GHS 12.4179 at this week’s open from last week’s opening trade values of GHS 11.7583 and GHS 12.4074 against the Dollar and the Pound respectively. Against the Pound, the Cedi rose by 0.03% to trim sections of its most recent losses as it began the week being traded at GHS 14.3511 from last week’s opening trade quote of GHS 14.3556. The Pound was largely driven lower against a basket of currencies after sluggish British growth figures which revealed that the UK economy recovered partially in August after a sharp decline in July.

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 11.3251 indicating a YTD loss of 31.84% on the BoG inter-bank trading platform. It is also presently being quoted at GHS 11.7819 on the Open Forex Market (oanda.com) after opening the year at GHS 10.0825 indicating a YTD loss of 16.85%.