Currency News [April 8, 2024]

After last week’s seeming resilient performance of the local currency against some of its major trading partner currencies on the back of the inflow of USD 300.0 million from the World Bank and remittances during the Easter Holidays, the Cedi remained troubled at this week’s opening as it opened the week nursing losses across the board against the Dollar, the Pound, and the Euro. The receipt of the inflows strengthened the hands of the central bank as it enabled the bank to increase intervention in the currency spot market.

The Cedi, however, failed to hold onto the gains from the fresh injections as the ongoing demand pressures exacerbated by the emergence of some risks to the local economy sent the local unit into the sea of red. The fate of the Cedi in the short to medium term now rests on the outcome of the International Monetary Fund’s (IMF) second review of Ghana’s 3-year USD 3.0 billion programme with the Fund. Currently, the review of Ghana’s performance under the programme has entered into week two with a focus on tax efficiency and averting fiscal slippages in this year’s election.

On the Bank of Ghana (BoG) inter-bank trading platform, the Cedi was down by 0.40%, 0.98%, and 1.20% to begin the week trading at GHS 12.9658, GHS 16.3952, and GHS 14.0707 from last week’s opening trade values of GHS 12.9136, GHS 16.2362, and 13.9044 against the Dollar, the Pound, and the Euro respectively. The Dollar added to its gains against the Cedi after data showed US employers hired far more workers than expected in March, a development that could delay anticipated interest rate cuts from the Fed.

On the Open Forex Market (oanda.com), the Cedi traded lower at 1.11%, 1.48%, and 1.82% after opening the week trading at GHS 13.4149, GHS 16.9557, and GHS 14.5459 from last week’s opening trade values of GHS 13.2671, GHS 16.7084, and GHS 14.2862 against the Dollar, the Pound, and the Euro respectively. The Pound recorded gains against some of its trading pairs after activity data suggested the UK economy was on track to exit recession when official first-quarter growth data is next published.

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 12.9658 indicating a YTD loss of 9.06% on the BoG inter-bank trading platform. It is also presently being quoted at GHS 13.4149 on the Open Forex Market (oanda.com) after opening the year at GHS 11.9945 indicating a YTD loss of 11.84%.