Currency News [November 11, 2024]

After weeks of persistent losses which saw the local currency end October with a year-to-date (YTD) loss of over 30.0% against the US Dollar, the Cedi showed signs of gaining traction at the start of the week as it rose to pare some of its recent losses suffered against its three major trading partner currencies. On the Bank of Ghana (BoG) inter-bank trading platform, the Cedi gained across the board against the Dollar, the Pound, and the Euro. It also recorded gains against the Pound and the Euro on the Open Forex Market (oanda.com).

The local unit has come under intense pressure over the past few months fueled by increasing demand for forex by importers and businesses seeking to plan and restock ahead of the yuletide. However, increased intervention by the central bank is beginning to take effect. The central bank’s targeted interventions which include a two-day and a seven-day forward forex auction have seen the injection of over USD 200.0 million into the local currency market. This has helped to calm down the sharp depreciation of the Cedi. Analysts are, however, concerned about the feasibility of this approach given Ghana’s limited forex reserves.

On the BoG inter-bank trading platform, the Cedi soared by 0.61%, 1.19%, and 2.76% to begin the week trading at GHS 16.3082, GHS 20.9886, and GHS 17.3718 from last week’s opening trade quotes of GHS 16.4082, GHS 21.2404, and GHS 17.8641 against the Dollar, the Pound, and the Euro respectively. The Euro lost against a basket of currencies weighed down by political uncertainty in the bloc’s biggest economy after the collapse of the German coalition government last week.

On the Open Forex Market (oanda.com), the Cedi went down by 0.45% to open the week at a trade value of GHS 16.4206 from last week’s opening trade level of GHS 16.3478. The Dollar gained against most of its trading pairs aided by Trump’s claimed return to the US presidency, with his tariff and immigration policies seen as inflationary, and therefore likely to prompt the Fed to reduce rates at a much slower and shallower pace. Against the Pound and the Euro, the Cedi appreciated by 0.18% and 1.52%, having opened the week trading at GHS 21.1645 and GHS 17.5348 from last week’s opening trade quotes of GHS 21.2024 and GHS 17.8061 respectively.

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 16.3082 indicating a YTD loss of 37.17% on the BoG inter-bank trading platform. It is also being quoted at GHS 16.4206 on the Open Forex Market (oanda.com) after opening the year at GHS 11.9945 indicating a YTD loss of 36.90%.