Weekly Currency News Report – Week 9 [March 2, 2025]

The Cedi continued to defy the odds in the midst of the heightening geopolitical tensions following the Middle East crisis as it strengthened yet again 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). The Dollar, alongside some other hard assets have continued to benefit from safe-haven demand as the conflict initially between the US/Israel and Iran has spilled out into neighbouring countries.

The Cedi, however, was unperturbed by these foreign developments as it remained largely driven by domestic developments on the back of improvements in forex supply and supported by a further rise in investor confidence. The President, whilst delivering his 2026 State of the Nation’s address to Ghana’s parliament, touted the Cedi’s achievement, assuring the business community that the government had made currency stability a priority. The President further assured that the government policies have strengthened the local currency and enabled it to “put up a good fight against the other currencies.” The Cedi’s revamped upward trajectory is, however, likely to face some headwinds in the short-term as the impact of the geopolitical tensions is expected to impact volatile economies.

On the BoG inter-bank trading platform, the Cedi traded up by 1.65%, 2.59%, and GHS 2.63%, having been sold for GHS 10.7254, GHS 14.3398, and GHS 12.5249 at the start of the week from last week’s opening trade quotes of GHS 10.9055, GHS 14.7213, and GHS 12.8637 against the Dollar, the Pound, and the Euro, respectively. The Euro came under pressure against a basket of trading pairs as conflicts in the Middle East are set to cause energy prices in the highly oil-import-reliant region to surge.

On the Open Forex Market (oanda.com), the Cedi hardened by 2.23%, GHS 2.97%, and 2.87% to trade at GHS 10.7171, GHS 14.3668, and GHS 12.5698 at the start of the week from last week’s opening trade quotes of GHS 10.9613, GHS 14.8069, and GHS 12.9407 against the Dollar, the Pound, and the Euro, respectively. The Pound suffered a hit against some of its trading pairs, struggling to benefit from data that showed that sentiment in Britain’s business and professional services sector became markedly less negative in the current quarter.

The Cedi was quoted at GHC 10.5053 on the first trading day of the year against the Dollar and is currently trading at GHS 10.7254, indicating a Year-to-Date (YTD) depreciation of 2.10% on the BoG inter-bank trading platform. It is also currently quoted at GHS 10.7171 on the Open Forex Market (oanda.com), having opened the year at GHS 10.5253, indicating a YTD loss of 1.82%.