Currency News [October 21, 2024]

The Cedi traded mixed against its three major trading partner currencies on both the Bank of Ghana (BoG) inter-bank trading platform and Open Forex Market (oanda.com) at the week’s opening as growing demand for forex by businesses and importers derailed some gains in the forex market following the upgrade of Ghana’s sovereign ratings by rating agencies.

Increased demand in forex by importers and businesses as they gear up for the yuletide coupled with news that the Ghanaian government has officially commenced processes to resume payment of its Eurobond obligations to lenders after successfully executing its debt exchange programme added to pressures on the local currency. Reports from the finance ministry indicate that the government has so far made a payment of USD 520.0 million comprising USD 120.0 million as a consent fee to bondholders and USD 320.0 million in coupon payments that were earlier suspended. Analysts believe that these drawdowns of Ghana’s forex reserves will gravely hurt the Cedi’s outlook in the near to medium term.

On the BoG inter-bank trading platform, the Cedi traded down by 0.19% against the Dollar to open the week at a trade value of GHS 16.0080 from last week’s opening trade value of GHS 15.9780. Against the Pound and the Euro, the Cedi traded up by 0.31% and 0.58% to open the week at trade values of GHS 20.7928 and GHS 17.3187 from last week’s opening trade values of GHS 20.8577 and GHS 17.4191 respectively. The Euro fell against a host of currencies in the wake of last Thursday’s European Central Bank rate cut, following on from September’s move, the first back-to-back rate cut since 2011.

On the Open Forex Market (oanda.com), the Cedi tumbled by 0.55% and 0.24% to trade at GHS 16.0670 and GHS 20.9131 at the week’s opening from last week’s opening trade quotes of GHS 15.9787 and GHS 20.8620 respectively. The Dollar added to its gains against a basket of currencies on the back of rising prospects of former President Trump winning next month’s election, since his proposed tariff and tax policies are seen as likely to keep US rates high and undermine the greenback’s trading pairs. Against the Euro, the Cedi soared by 0.13% to trade at GHS 17.4210 at the week’s opening from last week’s opening trade quote of GHS 17.4441.

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 16.0080 indicating a year-to-date (YTD) loss of 34.65% on the BoG inter-bank trading platform. It is also being quoted at GHS 16.0670 on the Open Forex Market (oanda.com) after opening the year at GHS 11.9945 indicating a YTD loss of 33.95%.