Currency News [April 2, 2024]

News that Ghana is set to commence the second review of its three-year USD 3.0 billion programme with the International Monetary Fund (IMF) did little to revive the struggling local currency as the Cedi opened the week nursing losses against the Dollar on both the Bank of Ghana (BoG) inter-bank trading platform and the Open Forex Market (oanda.com). The Cedi, however, gathered some momentum against the Pound and the Euro on the BoG inter-bank trading platform as it rose to pare some of its recent losses.

The review will cover critical areas such as economic recovery, fiscal management, and structural reforms among others with the outcome of the review expected to have some significant bearing on the nation’s economic trajectory and Ghana’s relationship with international financial institutions. Upon a successful review and subsequent approval by the board of the IMF, Ghana would be expected to receive the third tranche of USD 360.0 million to strengthen its forex reserves. This will add up to the already received USD 300.0 million from the World Bank. Whilst the Cedi is expected to continue its struggles, these inflows will help to sustain pressures on the local currency in the near term.

On the BoG inter-bank trading platform, the Cedi was down by 0.48% against the Dollar after opening the week trading at GHS 12.9136 from last week’s opening trade value of GHS 12.8521. Against the Pound and the Euro, the Cedi gained by 0.05% and 0.14% to open the week at trade values of GHS 16.2362 and GHS 13.9044 from last week’s opening trade quotes of GHS 16.2451 and GHS 13.9240 respectively. The Euro lost against a basket of currencies after Eurozone manufacturing activity took a further turn for the worse in March, contracting at a steeper pace than in February.

On the Open Forex Market (oanda.com), the Cedi plunged by 1.22%, 0.97%, and 0.67% to open the week trading at GHS 13.2671, GHS 16.7084, and GHS 14.2862 from last week’s opening trade values of GHS 13.1068, GHS 16.5486, and  GHS 14.1907 against the Dollar, the Pound, and the Euro respectively. The Dollar firmed up against most pairs after US data unexpectedly showed the first expansion in manufacturing since September 2022, causing traders to trim rate cut bets.

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 12.9136 indicating a YTD loss of 8.62% on the BoG inter-bank trading platform. It is also presently being quoted at GHS 13.2671 on the Open Forex Market (oanda.com) after opening the year at GHS 11.9945 indicating a YTD loss of 10.61%.