Currency News [September 16, 2024]

The Cedi failed to capitalize on rising expectations of interest rate cuts in the advanced economies as it opened the week nursing losses against its three major international trading partner currencies on both the Bank of Ghana (BoG) inter-bank trading platform and the Open Forex Market (oanda.com). Over the past few weeks, the local currency has lost steam after the disbursement of USD 360.0 million from the International Monetary Fund (IMF) helped ease demand pressures on the Cedi.

The Cedi is however experiencing renewed pressures despite the central bank’s intervention in both the spot and forward forex rates market for Bulk Oil Distribution Companies (BDCs). The central bank’s most recent intervention in the currency markets includes USD 37.0 million on the spot market and USD 20 million to BDCs. Recent pressures on the local unit are coming on the back of rising fears of election uncertainties and an increase in corporate demand for forex ahead of the yuletide.

On the BoG inter-bank trading platform, the Cedi was down by 1.93%, 2.71%, and 2.59% to open the week at trade values of GHS 15.6726, GHS 20.6832, and GHS 17.4277 from last week’s opening trade quotes of GHS 15.3752, GHS 20.1369, and GHS 16.9874 against the Dollar, the Pound, and the Euro respectively. Media reports that a 0.50% rate cut by the US Fed remained an option after new inflation data reinforced expectations of a 0.25% rate cut tapered the Dollar’s rally against most peers. It however remained strong against most vulnerable currencies including the Cedi.

On the Open Forex Market (oanda.com), the Cedi traded down by 0.02%, 0.70%, and 0.58% to begin the week trading at GHS 15.7081, GHS 20.7135, and GHS 17.4623 from last week’s opening trade quotes of GHS 15.7043, GHS 20.5700, and GHS 17.3617 against the Dollar, the Pound, and the Euro respectively. The Euro firmed up against a basket of currencies after the European Central Bank president dampened expectations for another rate reduction next month, stating that the rate path was not predetermined.

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 15.6726 indicating a year-to-date (YTD) loss of 31.83% on the BoG inter-bank trading platform. It is also being quoted at GHS 15.7081 on the Open Forex Market (oanda.com) after opening the year at GHS 11.9945 indicating a YTD loss of 30.96%.