Currency News [January 20, 2025]

The Cedi retreated simultaneously against its three major international trading partner currencies for the first time in 2025 this week in what appears to be a renewal of pressures on the local currency as it recorded a week-on-week loss against the Dollar, the Pound, and the Euro. The Cedi’s loss was observed on both the Bank of Ghana (BoG) inter-bank trading platform and the Open Forex Market (oanda.com). The local unit’s margin of decrease on the BoG inter-bank far outpaced that on the Open Forex Market with trading figures on the inter-bank surging past that on the Open Forex Market, signaling intense forex pressures among the banks.

The Cedi’s performance at the week’s start is coming on the back of increasing demand for forex by importers and businesses to replenish their depleted stocks after the increased economic activities during the festive season. Also mounting pressures on the Cedi and other emerging market currencies is the growing optimism surrounding President Trump’s ascension to the White House which the market is betting would culminate in further strengthening of the greenback.

On the BoG inter-bank trading platform, the Cedi plunged by 1.35%, 2.40%, and 3.18% to open the week trading at GHS 15.0075, GHS 18.4502, and GHS 15.6054 from last week’s opening trade quotes of GHS 14.8074, GHS 18.0176, and GHS 15.1244 against the Dollar, the Pound, and the Euro respectively. The Dollar continued its roller coaster ride against most of its trading pairs on the back of rising Treasury yields, reflecting expectations that Trump’s policies could boost inflation at a time when the US economy is already showing signs of resilience.

On the Open Forex Market (oanda.com), the Cedi plummeted by 0.98%, 1.68%, and 2.26% to trade at GHS 14.9843, GHS 18.3499, and GHS 15.5074 at the week’s start from last week’s opening trade quotes of GHS 14.8383, GHS 18.0460, and GHS 15.1648 against the Dollar, the Pound, and the Euro respectively. The Pound rose against the troubled Cedi despite falling against many major international currencies, battered by British retail sales numbers which fell unexpectedly last month and raised the risk of an economic contraction in Quarter 4 – 2024.

The Cedi was quoted at GHC 14.7074 on the first trading day of the year against the Dollar and is currently being sold at GHS 15.0075 indicating a Year-to-Date (YTD) depreciation of 2.04% on the BoG inter-bank trading platform. It is also being quoted at GHS 14.9843 on the Open Forex Market (oanda.com) after opening the year at GHS 14.7134 indicating a YTD loss of 1.84%.