Currency News [December 9, 2024]

The Cedi at this week’s opening maintained its traction against its three major trading partner currencies on both the Bank of Ghana (BoG) inter-bank trading platform and the Open Forex Market, pushing its recovery to its highest since mid-July 2024. The local unit has been on an impressive recovery over the past few weeks, paring some of its losses after the central bank began to increase its intervention in the domestic currency market.

This is coming on the back of the improved position of Ghana’s international reserves, allowing the central bank to increase forex supply to meet the rising demand for forex by importers and businesses. A recently released data by the BoG has revealed that Ghana’s Gross International Reserves have steadily stayed on an upward trajectory climbing up from USD 6.31 billion at the start of the year to USD 7.89 billion in November. This position is expected to be boosted by the disbursement of the fourth tranche of USD 360 million from the IMF. It is also expected that the recession of the election-linked uncertainties would boost the Cedi’s outlook going forward.

On the BoG inter-bank trading platform, the Cedi appreciated by 2.60%, 1.45%, and 1.75% to trade at GHS 14.8074, GHS 18.9327, and GHS 15.6637 at the week’s opening from last week’s opening trade quotes of GHS 15.2026, GHS 19.2115, and GHS 15.9432 against the Dollar, the Pound, and the Euro respectively. The greenback fell against some of its trading pairs with Dollar bulls being partially restrained after private payrolls and weekly jobless claims pointed to a weakening labour market, suggesting that the US Fed has the scope to cut interest rates further.

On the Open Forex Market (oanda.com), the Cedi soared by 3.04%, 2.43%, and 2.57% to begin the week trading at GHS 14.8525, GHS 18.9468, and GHS 15.6860 from last week’s opening trade quotes of GHS 15.3188, GHS 19.4184, and GHS 16.0991 against the Dollar, the Pound, and the Euro respectively. The Euro fell against a host of trading pairs after the single currency was hit by data that showed that German industrial production unexpectedly fell in October, pointing to further weaknesses in the Eurozone’s dominant economy.

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 14.8074 indicating a year-to-date (YTD) loss of 24.55% on the BoG inter-bank trading platform. It is also being quoted at GHS 14.8525 on the Open Forex Market (oanda.com) after opening the year at GHS 11.9945 indicating a YTD loss of 23.83%.