Currency News [November 6, 2023]

Ahead of the budget presentation to Ghana’s parliament later in the week, the Cedi traded mixed against its three major trading partner currencies at this week’s opening on both the Bank of Ghana (BoG) inter-bank trading platform and the Open Forex Market (oanda.com) where the Cedi extended its decline against the Dollar but rose against the Pound and the Euro to pare some of its recent losses.

The local currency after weeks of staying on a stable trajectory has come under fresh pressures on the back of delayed expected forex inflows. Ghana is expecting an additional USD 0.6 billion to bring its total disbursement under the IMF-assisted programme to USD 1.2 billion in 2023 alone. However, according to the IMF, Ghana will have access to the funds only after the sovereign secures the necessary financial assurances from its external creditors. The World Bank is similarly expected to make available additional funding support of USD 0.5 billion by the close of the year. Ghana’s forex reserves are also expected to receive a boost from a USD 1.2 billion cocoa-syndicated loan facility. The market will be on the lookout for hints from the finance minister’s budget presentation as to when these inflows will hit Ghana’s accounts.

On the BoG inter-bank trading platform, the Cedi depreciated by GHS 019% to begin the week trading at GHS 11.5353 from last week’s trade value of GHS 11.5129 against the Dollar. The Dollar received a boost from remarks by the US Fed Chair who warned that the Fed was committed to achieving a stance of monetary policy that is sufficiently restrictive to bring inflation down to the Fed’s target over time. Against the Pound and the Euro, the Cedi strengthened by 0.78% and 0.20% from last week’s opening trade values of GHS 14.2633 and GHS 12.3674 to open this week trading at GHS 14.6507 and GHS 12.3432 respectively.

On the Open Forex Market (oando.com), the Cedi dipped by 0.38% to trade at GHS 11.9592 at the week’s open from last week’s opening trade quote of GHS 11.9139 against the Dollar. The Cedi traded up against the Pound and the Euro, having risen by 0.68% and 0.04% to open this week trading at GHS 14.6507 and GHS 12.7850 from last week’s opening trade quotes of GHS 14.7503 and GHS 12.7906 respectively. The Pound lost against the Cedi as signs point towards a challenging period of stagflation, characterized by high inflation coupled with rising unemployment levels in the UK.

 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 11.5353 indicating a YTD loss of 34.28% on the BoG inter-bank trading platform. It is also presently being quoted at GHS 11.9592 on the Open Forex Market (oanda.com) after opening the year at GHS 10.0825 indicating a YTD loss of 18.61%.