Currency News [July 7, 2025]

News that the Board of the International Monetary Fund (IMF) has approved the fourth review of Ghana’s Extended Credit Facility (ECF) programme did little to lift the Cedi, which had in the previous week nursed losses against its three major trading partner currencies. In a statement issued soon after the announcement, Ghana’s finance minister explained that “the IMF Executive Board has just approved Ghana’s 4^th review under the ECF programme, clearing the path for a substantial $370 million disbursement”. This receipt is expected to shore up the country’s foreign exchange reserves, which, according to the President this week, have increased to 6 months of import cover from 4.7 months of import cover in April.

Also impacting the Cedi’s performance was the release of news last week where the Ministry of Finance stated that the government has successfully effected a payment of USD 349.52 million in respect of Eurobond debt service obligations following the conclusion of the sovereign’s Eurobond debt restructuring programme in October last year. This brings to a total of USD 1.17 billion in Eurobond debt payments. According to the finance ministry, these payments are expected to boost investor confidence in Ghana’s sovereign credit profile and economic recovery programme. Despite these positive sentiments expressed by the ministry, some market analysts believe that these payments could wear down Ghana’s forex reserves and destabilize the local currency’s outlook.

On the BoG inter-bank trading platform, the Cedi traded down by 0.39% and 0.04% against the Dollar and the Euro, having been exchanged for 10.3552 and GHS 12.1244 at the start of the week from last week’s opening trade quotes of GHS 10.3152 and GHS 12.1197, respectively. The Dollar added to last week’s gains against the Cedi after nonfarm payrolls data for June came in stronger than expected, with the print highlighting continued resilience in the US labour market, which in turn gives the US Fed less impetus to slash rates soon. Against the Pound, the Cedi traded up by 0.28% from GHS 14.1328 offered at the start of last week to open this week at a trade value of GHS 14.0934.

On the Open Forex Market (oanda.com), the Cedi depreciated by 0.27% and 0.23% to trade at GHS 10.4003 and GHS 12.2096 at the start of the week from the previous week’s opening trade quotes of GHS 10.3726 and GHS 12.1814 against the Dollar and the Euro, respectively. Against the Pound, the Cedi climbed up by 0.45% to trade at GHS 14.1629 at the week’s start, up from GHS 14.2263 at the start of last week. The Pound lost against a basket of trading pairs, weakened by data which showed that British house prices stagnated month-on-month in June, as the data underlined the subdued state of Britain’s housing market following an increase in tax on property transactions.

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 10.3552, indicating a Year-to-Date (YTD) gain of 29.59% on the BoG inter-bank trading platform. It is also presently being quoted at GHS 10.4003 on the Open Forex Market (oanda.com) after opening the year at GHS 14.7134, indicating a YTD gain of 29.31%.