Weekly Currency News Report – Week 14 [April 7, 2025]

The Cedi lost traction at this week’s opening, losing ground across the board 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 Cedi’s performance follows a series of weaknesses observed among several emerging market and riskier currencies as the market continues to take positions in safe-haven currencies and assets on the back of the escalation of tensions between the United States and Iran.

Following the successful reopening of the domestic bond market, with the government issuing its first 7-year bond since 2023, analysts had anticipated that the issuance would attract offshore investors to further boost Ghana’s already robust Gross International Reserves (GIS). Concerns over the sharp drop in domestic rates as inflation reaches record lows have, however, rendered domestic securities less attractive to offshore investors. This notwithstanding, the local currency is expected to continue to mount resistance as Ghana’s reserves soar, supported by strong export earnings amid a climb in gold export receipts. Ghana’s GIS reached USD 14.5 billion, equivalent to 5.8 months of import cover as of end-February, a stance which should effortlessly strengthen the hands of the central bank to sustain the Cedi’s outlook.

On the BoG inter-bank trading platform, the Cedi declined by 0.18%, 0.60%, and 1.17% to open the week trading for GHS 11.0155, GHS 14.5955, and GHS 12.7427 against the Dollar, the Pound, and the Euro, having opened the previous week, trading at GHS 10.9955, GHS 14.5086, and GHS 12.5953, respectively. The Dollar ticked up against most of its trading pairs, as the greenback continued to be an attractive safe-haven for investors amid a further escalation in the fighting in the Middle East.

On the Open Forex Market (oanda.com), the Cedi plummeted by 0.29%, 0.35%, and 0.77%, having begun the week being offered for GHS 11.0251, GHS 14.5878, and GHS 12.7232 from last week’s opening trade quotes of GHS 10.9937, GHS 14.5369, and GHS 12.6254 against the Dollar, the Pound, and the Euro, respectively. The Euro rose against the Cedi despite losing ground against some safe havens as the single currency faces a headwind following the Eurozone’s massive reliance on the Middle East for both liquefied natural gas and fuel.

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 11.0155, indicating a Year-to-Date (YTD) depreciation of 4.86% on the BoG inter-bank trading platform. It is also currently quoted at GHS 11.0251 on the Open Forex Market (oanda.com), having opened the year at GHS 10.5253, indicating a YTD loss of 4.75%.