Currency News [October 28, 2024]

The Cedi’s woes intensified at this week’s opening as the local currency began the week nursing losses across the board 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). The resurgence of pressures on the local unit is stemming from increased demand as importers and body corporates seek to plan and restock ahead of the festive season.

However, Ghana’s finance minister has expressed optimism in the Cedi’s capability to withstand the growing demand for forex at a press briefing in the US during the Annual IMF/World Bank meetings. The minister sought to assure investors that an anticipated USD 360 million from the IMF and an additional USD 300 million from the World Bank would help boost Ghana’s reserves, allowing the central bank to confidently support the currency. At its recent forex spot auction, the central bank accepted all USD 89.3 million worth of bids tendered signaling adequate forex reserves to meet demand pressures.

On the BoG inter-bank trading platform, the Cedi plunged by 0.94%, 0.88%, and 0.91% to open the week trading at GHS 16.1581, GHS 20.9748, and GHS 17.4761 from last week’s opening trade quotes of GHS 16.0080, GHS 20.7928, and GHS 17.3187 against the Dollar, the Pound, and the Euro respectively. The Dollar has been in strong demand of late, underpinned by declining expectations of aggressive Fed rate cuts as well as the perceived increased likelihood of former President Trump returning to the White House.

On the Open Forex Market (oanda.com), the Cedi traded down by 0.73%, 0.38%, and 0.41% to open the week at trade values of GHS 16.1843, GHS 20.9918, and GHS 17.4929 from last week’s opening trade values of GHS 16.0670, GHS 20.9131, and GHS 17.4210 against the Dollar, the Pound, and the Euro respectively. The Euro gained against a basket of currencies supported by a survey of German business sentiments that showed confidence improved more than expected in October, snapping months of declines and offering hope for some respite towards the end of the year in the economy’s battle with industrial woes and soft global demand.

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 16.1581 indicating a year-to-date (YTD) loss of 35.91% on the BoG inter-bank trading platform. It is also being quoted at GHS 16.1843 on the Open Forex Market (oanda.com) after opening the year at GHS 11.9945 indicating a YTD loss of 34.93%.