Currency News [January 27, 2025]

The Cedi opened the week suppressed 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) in what appears to be a renewal of downward pressures on the local unit after undergoing some bit of a respite in the latter sections of 2024. According to the central bank after the conclusion of its first monetary policy committee meeting for 2025, the Cedi’s rally in the last quarter of 2024 came on the back of commercial bank’s participation in the gold purchase programme for foreign currency, positive sentiments from the progress made in the debt restructuring, and continued tight liquidity management.

According to analysts, the seeming resurgence of pressures on the local currency at the start of the new year is coming on the heels of increasing demand for forex by businesses and importers to replenish their depleted stocks after the festive season. Analysts also believe that external debt servicing coupled with tightening global financial conditions with the US setting the tone is further deepening the growing pressures on the local currency and other emerging market currencies.

On the BoG inter-bank trading platform, the Cedi edged down by 1.33%, 2.86%, and 2.37% to open the week trading at GHS 15.2076, GHS 18.9776, and GHS 15.9757 from last week’s opening trade quotes of GHS 15.0075, GHS 18.4502, and GHS 15.6054 against the Dollar, the Pound, and the Euro respectively. The Euro printed a strong gain against the Cedi and the other trading pairs, boosted by better-than-expected eurozone activity data for January, as the region returned to growth.

On the Open Forex Market (oanda.com), the Cedi plunged by 1.69%, 3.59%, and 3.03% to begin the week with trade values of GHS 15.2369, GHS 19.0088, and GHS 15.9768 from last week’s opening trade values of GHS 14.9843, GHS 18.3499, and GHS 15.5074 against the Dollar, the Pound, and the Euro respectively. The Pound rose against a basket of trading pairs having received a boost after PMI data came in stronger than expected in January, adding to the hopes of gradual economic recovery in the UK.

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 15.2076 indicating a Year-to-Date (YTD) depreciation of 3.40% on the BoG inter-bank trading platform. It is also presently being quoted at GHS 15.2369 on the Open Forex Market (oanda.com) after opening the year at GHS 14.7134 indicating a YTD loss of 3.56%.