Currency News [February 19, 2024]

The Cedi fell across the board against its three major trading partner currencies at the week’s opening on both the Bank of Ghana (BoG) inter-bank trading platform and the Open Forex Market, pressured by both domestic and foreign-related developments. On the domestic front, the Cedi was battered by a resurgence of demand pressures by importers and businesses despite the central bank’s intervention on both the spot and Bulk Oil Distributors’ forward rates markets. On the foreign front, growing expectations of delayed rate cuts by the US, UK, and Europe’s central banks increased the Dollar, the Pound, and the Euro’s appeal at the expense of emerging markets and riskier currencies.

The Cedi’s performance comes amidst assurances by the newly assigned finance minister who has given an indication that he will remain committed to the policies and programmes as outlined in this year’s budget. He has also further assured of his intention to aggressively pursue revenue mobilization to hasten the local economy’s recovery.

On the BoG inter-bank trading platform, the Cedi traded down by 0.99%, 0.77%, and 1.03% to open the week at trade values of GHS 12.2875, GHS 15.4651, and GHS 13.2305 from last week’s opening trade values of GHS 12.1671, GHS 15.3463, and GHS 13.0953 against the Dollar, the Pound, and the Euro respectively. The Pound added to its recent gains against the Cedi, helped by the view that persistent inflation will mean the Bank of England will have to keep interest rates higher for longer.

On the Open Forex Market (oanda.com), the Cedi weakened by 0.43%, 0.26%, and 0.40% to trade at GHS 12.4959, GHS 15.7550, and GHS 13.4686 at this week’s opening from last week’s opening trade quotes of GHS 12.4427, GHS 15.7137, and GHS 13.4148 against the Dollar, the Pound, and the Euro respectively. The Euro was boosted by data that showed the Eurozone’s current account in a larger-than-expected surplus in December, pointing to the bloc’s economic recovery.

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 12.2875 indicating a YTD loss of 3.35% on the BoG inter-bank trading platform. It is also presently being quoted at GHS 12.4959 on the Open Forex Market (oanda.com) after opening the year at GHS 11.9945 indicating a YTD loss of 4.18%.