Weekly Currency News Report – Week 10 [March 9, 2025]

After a brief bout of strengthening, which began from the closing sessions of the previous month, the Cedi has begun to show signs of bowing to the ongoing rising geopolitical tensions in the Middle East. According to a report released by the International Monetary Fund, early signals from global markets are already showing disruptions to economic activities and trade routes, alongside rising energy prices, which could potentially place additional pressure on inflation and economic growth across several economies.

The Cedi consequently lost steam as it came under pressure, erasing some of the gains registered over the two weeks on both the Bank of Ghana (BoG) inter-bank trading platform and the Open Forex Market (oanda.com). The Cedi began the week nursing losses against the Dollar and the Pound, whilst scarcely holding onto its gains against the Euro on both trading platforms. Although the Cedi, along with some other riskier and emerging market currencies are expected to face some headwinds on the back of uncertainties surrounding the Middle East crisis, the local currency is likely to benefit from stronger export receipts from crude and gold amid a planned targeted market intervention from the central bank in March.

On the BoG inter-bank trading platform, the Cedi lost by 0.56% and 0.76% to open the week, being sold for GHS 10.7854 and GHS 14.4492 from last week’s opening trade quotes of GHS 10.7254 and GHS 14.3398 against the Dollar and the Pound, respectively. The Dollar, alongside some other hard currencies and assets, has largely stood firm as an escalating conflict in the Middle East kept investors jittery and drove demand for safe-haven assets. Against the Euro, the Cedi traded up by 0.19%, having been sold for GHS 12.5015 at the start of the week from last week’s opening trade value of GHS 12.5249.

On the Open Forex Market (oanda.com), the Cedi plunged by 0.81% and 0.47% to trade at GHS 10.8038 and GHS 14.4345 at the start of the week from last week’s opening trade quotes of GHS 10.7171 and GHS 14.3668 against the Dollar and the Pound, respectively. The British Pound showed unexpected strength in the amidst of the geopolitical uncertainty, largely benefiting from favourable terms of trade shifts and positioning adjustments rather than fundamental strength, according to some currency analysts. Against the Euro, the Cedi went up by 0.57% to open the week trading at GHS 12.4983 from last week’s opening trade figure of GHS 12.5696.

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 10.7854, indicating a Year-to-Date (YTD) depreciation of 2.67% on the BoG inter-bank trading platform. It is also currently quoted at GHS 10.8038 on the Open Forex Market (oanda.com), having opened the year at GHS 10.5253, indicating a YTD loss of 2.65%.