Currency News [July 1, 2024]

The Cedi’s struggles widened this week with no apparent end in sight as the local currency posted its second consecutive loss 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 Cedi’s struggles put its year-to-date (YTD) depreciation at the close of the first half of the year at 22.75% against the Dollar which compares with a YTD depreciation of 28.08% over the same period last year.

The Cedi’s performance comes at a time when the nation is readying to receive the third tranche of USD 360.0 million from the International Monetary Fund (IMF) following the Fund’s approval of the second review of Ghana’s programme with the IMF. The funds are expected to be used to support the national budget as well to strengthen Ghana’s forex reserves. It is expected that the disbursement of the funds coupled with the upward review of Ghana’s growth forecast by the IMF from 2.8% to 3.1% for the year will help to boost confidence in the Ghanaian economy and further calm the currency speculations.

On the BoG inter-bank trading platform, the Cedi traded down by 0.69%, 0.41%, and .69% to open the week at trade values of GHS 14.5933, GHS 18.4547, and GHS 16.6581 from last week’s opening trade quotes of GHS 14.4937, GHS 18.3795, and GHS 15.5508 against the Dollar, the Pound, and the Euro respectively. The market favoured the Dollar as prospects of a second Donald Trump presidency saw a rise, boosted by President Biden’s vacillating debate performance last week.

On the Open Forex Market (oanda.com), the Cedi nudged down by 0.55%, 0.49%, and 0.81%, haven began the week trading at GHS 15.2729, GHS 19.3347, and GHS 16.4138 from last week’s opening trade values of GHS 15.1893, GHS 19.2410, and GHS 16.2817 against the Dollar, the Pound, and the Euro respectively. The Euro gained against a basket of trading peers after a convincing and historic win by the French far right in the first round of parliamentary elections.

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 14.5933 indicating a YTD loss of 22.75% on the BoG inter-bank trading platform. It is also being quoted at GHS 15.2729 on the Open Forex Market (oanda.com) after opening the year at GHS 11.9945 indicating a YTD loss of 27.33%.