Currency News [December 11, 2023]

The Cedi opened the week mixed against its three major trading partner currencies on both the Bank of Ghana (BoG) inter-bank trading platform and the Open Forex Market where the Cedi maintained its resilience against the relatively weakened Euro but remained subdued against the Dollar. The Cedi’s performance this week comes amidst tight forex liquidity as expected foreign currency inflows are delayed.

Presently, the Cedi’s performance continues to be largely dependent on the central bank’s intervention in the local forex market through both spot market activities and forward forex auctions to bulk oil distribution companies. According to media reports, the central bank’s USD 1.0 million forex support gave some respite to the local currency as demand surges. It is expected that parliament’s approval of a USD 350.0 million World Bank loan facility to support some developmental projects in the country will further give a boost to the Cedi.

On the BoG inter-bank trading platform, the Cedi lost by 0.10% to open the week at a trade value of GHS 11.6416 from last week’s opening trade value of GHS 11.6304. Against the Pound and the Euro, the Cedi traded up by 0.51% and 0.34% from last week’s opening trade quotes of GHS 14.6811 and GHS 12.5823 to open this week trading at GHS 14.6067 and GHS 12.5401 respectively. The Euro fell against a basket of currencies including the Cedi after a string of weak economic data from the Eurozone increased bets of an early rate cuts next year.

On the Open Forex Market (oanda.com), the Cedi traded down by 0.15% from GHS 12.0405 at last week’s opening to begin this week at a trade value of GHS 12.0582. The Dollar’s strengthening was held again by a stronger-than-expected nonfarm payroll reading, which dented expectations for an early interest rate cut by the US Fed. The Cedi, however, came in strong against the Pound and the Euro with gains of 0.64% and 0.69% to begin the week at trade values of GHS 15.1405 and GHS 12.9784 from last week’s opening trade values of GHS 15.2382 and GHS 13.0690 respectively.

The Cedi was quoted at GHC 8.5903 on the first trading day of the year against the Dollar and is currently being sold at GHS 11.6416 indicating a YTD loss of 35.52% on the BoG inter-bank trading platform. It is also presently being quoted at GHS 12.0582 on the Open Forex Market (oanda.com) after opening the year at GHS 10.0825 indicating a YTD loss of 19.60%.