Currency News [December 16, 2024]

The Cedi’s impressive revival continued unabated at this week’s opening, extending its gains against its three major international trading partner currencies on the Bank of Ghana (BoG) inter-bank trading platform and the Open Forex Market (oanda.com). The Cedi’s rally is coming on the back of increased market intervention by the central bank following improvement in Ghana’s Gross International Reserves which has further been boosted by the receipt of USD 360 million from the International Monetary Fund (IMF) earlier this month under the sovereign’s Extended Credit Facility programme with the Fund.

The local currency’s outlook is anticipated to be boosted further by remittance inflows which are mostly higher in the later part of the year as Ghanaians living abroad prioritize rendering financial support to families back home. According to the World Bank, remittances received in 2023 came in a little shy of USD 5.0 billion with remittances in the current year expected to be better than those recorded last year. While the local unit is expected to ride on these positive events and the strong growth recorded in quarter three to expand its gains to trim its year-to-date (YTD) losses, the IMF has expressed concerns over delays in securing parliamentary approval for the disbursement of critical donor funding tied to Ghana’s economic recovery drives, hindering the release of over USD 500 from the World Bank and other donor agencies.

On the BoG inter-bank trading platform, the Cedi traded up by 0.47%, 1.19%, and 1.10% to open the week at trade values of GHS 14.7374, GHS 18.7076, and GHS 15.4916 from last week’s opening trade quotes of GHS 14.8074, GHS 18.9327, and GHS 15.6637 against the Dollar, the Pound, and the Euro respectively. The Pound lost against some of its trading pairs after data showed that the UK economy contracted again in October, with economic activities in the UK remaining subdued.

On the Open Forex Market (oanda.com), the Cedi surged by 1.06%, 1.86%, and 1.55% to trade at GHS 14.6952, GHS 18.6021, and GHS 15.4434 at the week’s opening from last week’s opening trade quotes of GHS 14.8525, GHS 18.9468, and GHS 15.6860 against the Dollar, the Pound, and the Euro respectively. The Euro fell against a basket of currencies following the European Central Bank’s decision to cut interest rates by 0.25% while signaling the possibility of further rate cuts in the coming year.

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 14.7374 indicating a YTD loss of 23.96% on the BoG inter-bank trading platform. It is also being quoted at GHS 14.6952 on the Open Forex Market (oanda.com) after opening the year at GHS 11.9945 indicating a YTD loss of 22.52%.