Currency News [November 27, 2023]

The ongoing fresh pressures on the local currency intensified further this week as the Cedi opened the week nursing losses across the board 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). The recent pressures on the local currency have come on the back of rising demand for forex by importers and businesses ahead of the festive season amid a limited supply of forex as expected forex inflows continue to delay.

The Governor of Ghana’s central bank has however assured during an MPC press briefing that Ghana will secure the second tranche of support from the International Monetary Fund (IMF) and also take receipt of the proceeds of the cocoa syndication loan before the close of the year. The Governor noted that Ghana has made significant progress in meeting some key programme targets which soon warrant the release of the next USD 600.0 million under the ECF programme.

On the BoG inter-bank trading platform, the Cedi plummeted by 0.25%, 1.24%, and 0.22% to begin the week trading at GHS 11.5958, GHS 14.6327, and GHS 12.6822 from last week’s trade values GHS 11.5668, GHS 14.4538, and GHS 12.6544 against the Dollar, the Pound, and the Euro respectively. The Dollar maintained its dominance over the local currency despite the market’s reassessment that growth in the world’s largest economy is beginning to see a slowdown, supporting bets that the US Fed could start cutting rates earlier than expected.

On the Open Forex Market (oanda.com), the Cedi plunged by 0.31%, 1.35%, and 0.46% from last week’s opening trade quotes of GHS 11.9584, GHS 14.9331, GHS 13.0708 to open this week trading at GHS 11.9957, GHS 15.1346, and GHS 13.1310 against the Dollar, the Pound, and the Euro respectively. The Pound gained against a set of peers supported by data that showed that firms in the UK unexpectedly reported a marginal return to growth in November after months of contractions.

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 11.5958 indicating a YTD loss of 34.99% on the BoG inter-bank trading platform. It is also presently being quoted at GHS 11.9957 on the Open Forex Market (oanda.com) after opening the year at GHS 10.0825 indicating a YTD loss of 18.98%.