GHANA CURRENCY'S PERFORMANCE IN APRIL2023 : EURO AND POUNDS APPRECIATE, DOLLAR DEPRECIATES

Currency Performance in April 2023
Euro Performance in April	Euro	British Pound	US Dollar
Opening Price	11.9716	13.6297	11.0192
Closing Price	12.0936	13.7698	10.9571
Change	0.122	0.1401	0.0621
Change (%)	1.02%	1.03%	1%

 

In April 2023, the Ghanaian Cedi witnessed mixed performances against major currencies, with the Euro and British Pound showing appreciation, while the US Dollar experienced a slight depreciation. The latest Currency Report highlights the fluctuations in the exchange rates.

                   

Ghanaian cedi notes    Source: Online

The Euro displayed a positive performance against the Cedi, appreciating approximately 1.02%. This led to a rise in the selling price of the Euro, increasing from 11.9716 Cedi at the start of the month to 12.0936 Cedi by the end. The strength of the Euro resulted in a depreciation of the Ghanaian Cedi.

 PERFORMANCE OF EURO IN APRIL, 2023.


 In contrast, the US dollar experienced a slight depreciation against the Ghanaian Cedi, with a decrease of approximately 1%. The exchange rate fluctuated between 11.0192 Cedi and 10.9571 Cedi during the month. By the end of April, fewer Cedis were required to purchase a US Dollar.

   PERFORMANCE OF US DOLLARS IN APRIL,2023

Similarly, the British Pound also demonstrated appreciation against the Cedi, increasing by around 1.03%. The exchange rate started at 13.6297 Cedi and closed at 13.7698 Cedi. This indicates a slight strengthening of the British Pound against the Cedi throughout April, further contributing to the Cedi's depreciation.

          PERFORMANCE OF THE BRITISH POUND IN APRIL, 2023

These currency fluctuations have implications for various sectors of the economy, including trade, investment, and tourism. The appreciation of the Euro and British Pound against the Cedi may affect the cost of imports, making them relatively more expensive. Conversely, it could enhance the competitiveness of Ghanaian exports in European markets, potentially boosting foreign exchange earnings and supporting economic growth.

                                            Source: Online

The depreciation of the US dollar against the Cedi can impact sectors such as investment and tourism. It may attract foreign investors, as they can acquire more Cedis for their assets. Additionally, it could make travel to Ghana more affordable for visitors from the United States.

                                          Source: Online
These currency dynamics highlight the importance of monitoring exchange rate fluctuations for businesses, consumers, and investors.  Mr Mathias Awudu of Shell Filling Station Shares Insights on Dollar-to-Cedi Exchange Rate Impact on Fuel Prices. 
      


     Mr. MATHIAS AWUDU, MANAGER OF SHELL FILLING STATION, NUNGUA.

According to Mr Awudu, the exchange rate between the US dollar and the Ghana cedi has experienced noticeable fluctuations in recent months. This volatility poses challenges for businesses, especially those in the petroleum industry that rely heavily on imports.
 

He further explained that due to the link between the exchange rate and fuel prices, significant changes in the exchange rate directly affect the cost of importing petroleum products. As a result, adjustments in fuel prices are inevitable to maintain a balance between costs and revenues.
Import Costs and Pass-through Effects
 

The exchange rate influences the cost of importing petroleum products, including transportation and storage expenses. 

Mr Awudu highlighted that when the cedi weakens against the dollar, the cost of importing fuel increases. Consequently, these increased costs are passed on to consumers through fuel price adjustments.

In a surprising turn of events, the depreciation of the dollar has resulted in a welcomed decline in fuel prices. Customers in and beyond are now sharing their views on the positive impact of this exchange rate

CUSTOMER 1: "I've noticed a significant impact on fuel prices ever since the dollar depreciated and the cedi appreciated. As a frequent traveller, it used to be quite expensive to fill up my tank with the rising cost of fuel due to the strong dollar. However, with the recent changes in exchange rates, I've observed a welcome decrease in fuel prices. It's a relief to see my expenses reduce, especially when it comes to fueling my vehicle. I can now enjoy my journeys without constantly worrying about the high fuel costs. The appreciating cedi has certainly made a positive difference in my pocket."

CUSTOMER 2: "The fluctuating exchange rates between the dollar and the cedi have had a noticeable impact on fuel prices. Initially, when the dollar was strong and the cedi weaker, fuel prices skyrocketed. It was quite frustrating to witness the constant increase in costs, especially for someone like me who heavily relies on my vehicle for commuting. However, since the Cedi has appreciated and the dollar depreciated, I've noticed a gradual decline in fuel prices. It's a relief to see some stability in prices and not feel the burden of the ever-increasing expenses. The appreciating cedi has certainly brought some relief to my monthly budget."

The exchange rate dynamics of the US Dollar, Euro, and British Pound in April 2023 against the Ghanaian Cedi were closely observed. Factors such as monetary policies, geopolitical developments, and market sentiments influenced these currency fluctuations. It is crucial for individuals and businesses to stay informed, monitor exchange rates, and seek expert guidance to navigate the ever-changing landscape of foreign exchange. Reporting for Nafti News Group one.

STORY BY :

SAMUEL-OFOSU APPIAH 

NAA NORLEY NORTEY RUTH

SALLY BORKETEY-LA

CHRISTABEL ABEGWAN ADAMA