Currency News [September 30, 2024]

The Cedi’s woes intensified at the week’s start as the local currency recorded its third successive weekly losses against its three major trading partner currencies on the Bank of Ghana (BoG) inter-bank trading platform and the Open Forex Market (oanda.com). The Cedi’s performance comes amidst a raft of measures employed by Ghana’s central bank aimed at curbing the sharp depreciation of the Cedi.

These measures include the unveiling of the Ghana Gold Coin which according to the BoG will be aimed at reducing the hoarding of forex to help check speculation. Also occurring in the course of the week was the outdooring of a new methodology for computing the central bank’s Foreign Exchange Market Reference Rate (MRR). The central bank believes this will ensure that the rate reflects market developments more accurately. These developments, however, had minimal bearing on the struggling Cedi as rising demand for forex by importers ahead of the festive season coupled with the recent policy rate cut exacerbated the already existing pressures on the local unit.

On the BoG inter-bank trading platform, the Cedi depreciated by 0.51%, 0.64%, and 0.43% to open the week at trade values of GHS 15.8079, GHS 21.1937, and GHS 17.6188 from last week’s opening trade quotes of GHS 15.7280, GHS 21.0597, and GHS 17.5425 against the Dollar, the Pound, and the Euro respectively. The Dollar’s appeal was boosted by the ongoing tensions in the Middle East as investors sought safety in the greenback.

On the Open Forex Market (oanda.com), the Cedi plunged by 0.31%, 0.81%, and 0.59% to trade at GHS 15.7853, GHS 21.1350, and GHS 17.6192 at the week’s opening from last week’s opening trade quotes of GHS 15.7359, GHS 20.9652, GHS 17.5153 against the Dollar, the Pound, and the Euro respectively. The Pound maintained its firm footing against a basket of currencies with the Pound receiving support as the Bank of England is widely seen as unlikely to be as aggressive with its rate cuts this year compared to other peer central banks.

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 15.8079 indicating a year-to-date (YTD) loss of 32.96% on the BoG inter-bank trading platform. It is also being quoted at GHS 15.7853 on the Open Forex Market (oanda.com) after opening the year at GHS 11.9945 indicating a YTD loss of 31.60%.