Currency News [February 3, 2025]

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 (oanda.com). On the BoG inter-bank trading platform, the Cedi built on the earlier losses recorded against the Dollar and the Pound. It, however, gained traction against the Euro as it recovered sections of its previous losses against the single currency. On the Open Forex Market, however, the Cedi only fell against the Dollar whilst recovering some of its previous losses against the Pound and the Euro.

The Cedi’s performance comes amidst an announcement by the Ghanaian government that a Memorandum of Understanding (MoU) reached with its Official Creditor Committee (OCC) has been signed by all Participating Creditor countries. The signing of this MoU thus formalizes the debt treatment agreed upon with the OCC and consequently marks a crucial step towards Ghana restoring long-term debt sustainability with the Cedi expected to continue to enjoy some respite as drawdowns of Ghana’s reserves are likely to be minimal.

On the BoG inter-bank trading platform, the Cedi tumbled by 0.66% and 0.22%, having been exchanged for GHS 15.3077 and GHS 19.0198 against the Dollar and the Pound on the first trading day of the week from last week’s opening trade values of GHS 15.2076 and GHS 18.9776 respectively. The Dollar strengthened against a host of trading pairs after President Trump delivered on his threat of more trade tariffs, boosting demand for the safe haven. Against the Euro, the Cedi soared by 1.19% to trade at GHS 15.7853 at this week’s opening from last week’s opening trade value of GHS 15.9757.

On the Open Forex Market (oanda.com), the Cedi plunged by 0.99% to open the week at a trade value of GHS 15.3873 against the Dollar from last week’s opening trade value of GHS 15.2369. Against the Pound and the Euro, the Cedi traded up by 0.09% and 1.13%, being sold for GHS 18.9919 and GHS 15.7963 at the week’s start from last week’s opening trade quotes of GHS 19.0088 and GHS 15.9768 respectively. The Euro suffered a shock as it fell against a basket of peers as investors braced for tariffs on Europe from the Trump administration with the recently announced 0.25% interest rate cut by the European Central Bank adding to the single currency’s woes.

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 15.3077 indicating a Year-to-Date (YTD) depreciation of 4.08% on the BoG inter-bank trading platform. It is also presently being quoted at GHS 15.3873 on the Open Forex Market (oanda.com) after opening the year at GHS 14.7134 indicating a YTD loss of 4.58%.