Currency News [December 2, 2024]

The Cedi’s impressive recovery continued unabated at this week’s opening where the local currency built on gains recorded against its three major trading partner currencies on both the Bank of Ghana (BoG) inter-bank trading platform and the Open Forex Market (oanda.com). The Cedi’s recent recovery is coming on the back of increased intervention by the central bank on the forex market with the central bank auctioning over USD 90.0 million on the spot market and an additional USD 20.0 million on the forward forex market to Bulk Oil Distribution Companies.

The Cedi’s performance is coming at a time when the International Monetary Fund (IMF) has passed Ghana on the third review of the sovereign’s programme with the Fund and subsequently approved the disbursement of USD 360.0 million to Ghana. The Fund noted in a release that Ghana’s performance under the programme has been generally satisfactory and reform efforts are paying off with good progress being made on debt restructuring. The receipt of the funds is expected to improve Ghana’s forex reserves which should allow the central bank to continue its market interventions.

On the BoG inter-bank trading platform, the Cedi traded up by 3.34%, 2.69%, and 3.24% to open the week at trade values of GHS 15.2026, GHS 19.2115, and GHS 15.9432 from last week’s opening trade values of GHS 15.7279, GHS 19.7432, and GHS 16.4774 against the Dollar, the Pound and the Euro respectively. The Euro experienced a significant decline against most of its trading pairs on the back of news that the French government faces a potential collapse following Prime Minister Michel Barnier’s decision to bypass a parliamentary vote on parts of the budget bill using a constitutional mechanism.

On the Open Forex Market (oanda.com), the Cedi soared by 3.05%, 2.31%, and 2.86% to trade at GHS 15.3188, GHS 19.4184, and GHS 16.0991 at the week’s opening from last week’s opening trade quotes of GHS 15.8005, GHS 19.8766, and GHS 15.5727 against the Dollar, the Pound, and the Euro respectively. Stronger-than-expected economic data from the US boosted bets that the Fed will slow its pace of interest rate cuts as it approaches the neutral rate, thus calming the Dollar’s rally against most of its trading pairs.

 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 15.2026 indicating a year-to-date (YTD) loss of 27.87% on the BoG inter-bank trading platform. It is also being quoted at GHS 15.3188 on the Open Forex Market (oanda.com) after opening the year at GHS 11.9945 indicating a YTD loss of 27.72%.