Currency News [April 15, 2024]

News that Ghana had reached a staff-level agreement with the International Monetary Fund (IMF) boosted the Cedi’s appeal as the local currency rose at this week’s opening to recover sections of its recent losses against some of its international trading partner currencies. The Cedi, however, failed to post any gains against the Dollar as the greenback remained broadly strong on the back of rising geopolitical tensions, bolstering the Dollar’s safe-haven appeal.

Over the weekend, the IMF announced that it had reached a staff-level agreement on the second review of the Extended Credit Facility programme with Ghana which should see to the release of USD 360.0 million in financing after an IMF management and executive board approval. Commenting on Ghana’s performance under the programme, the IMF noted that “performance under the IMF-supported programme has been generally strong, with most quantitative targets met.” The IMF further added that “good progress has also been made on the key structural reform milestones.” Once released, the funds are expected to help shore up Ghana’s forex position to give the Cedi some respite.

On the Bank of Ghana (BoG) inter-bank trading platform, the Cedi lost by 0.29% against the Dollar to begin the week trading at GHS 13.0037 from last week’s opening trade value of GHS 12.9658. The Dollar continued its rollercoaster ride against most of its trading pairs as stubborn inflation sowed doubts over how aggressively the US Fed will be able to cut rates this year. Against the Pound and the Euro, the Cedi traded higher by 1.12% and 1.63% after it opened the week at trade values of GHS 16.2117 and GHS 13.8420 from last week’s opening trade quotes of GHS 16.3952 and GHS 14.0707 respectively.

On the Open Forex Market (oanda.com), the Cedi dipped by 0.39% against the Dollar, having opened the week at a trade value of GHS 13.4669 from last week’s opening trade value of GHS 13.4149. Against the Pound and the Euro, the Cedi went up by 1.02% and 1.46% to open the week trading at GHS 16.7835 and GHS 14.3337 from last week’s opening trade values of GHS 16.9557 and GHS 14.5459 respectively. Dovish comments from some European Bank officials, pointing to a rate cut in the first half of the year weighed on the Euro against a basket of currencies.

The Cedi was quoted at GHC 11.8859 on the first trading day of the year against the Dollar and is currently being sold at GHS 13.0037 indicating a YTD loss of 9.38% on the BoG inter-bank trading platform. It is also presently being quoted at GHS 13.4669 on the Open Forex Market (oanda.com) after opening the year at GHS 11.9945 indicating a YTD loss of 12.28%.