Currency News For November 11th, 2019

The Ghanaian Cedi posted a mixed performance against its three major trading partner currencies at the start of the week ahead of the presentation of the 2020 budget statement and economic policy of the government to parliament later in the week. Expectations remain high as industry players are calling on the government to align measures to boost revenue and control spending in the 2020 election year. It is anticipated that the government will also state measures to boost confidence in the local currency which has depreciated by over 10% as at the close of the third quarter of 2019, its worst in more than three years.

The Cedi, this week, extended its losses against the US Dollar but gained momentum to post gains against the Euro on both the Bank of Ghana (BoG) inter-bank trading platform and on the Open Forex Market (oanda.com). As the economy heats up ahead of the Christmas season which is marked by an increase in imports, the Cedi’s stability for the remainder of the year will depend on Ghana’s Gross International Reverse (GIR) and the ability of the BoG to regularly intervene in the local currency space. The recently contracted USD 600 million COCOBOD syndicated loan facility from the African Development Bank is likely to strengthen Ghana’s GIR going forward.

On the BoG inter-bank trading platform, the Cedi depreciated by 0.33% against the US Dollar to begin the week trading at GHC 5.3625 from previous week’s trading value of GHC 5.3449. The Dollar rose to an all-time high against the Cedi during the week on expectations that the US and China were inching closer to a trade truce after the two countries agreed to roll back tariffs on each other’s imports. Against the British Pound Sterling, the Cedi was little changed as it fell marginally to GHC 6.8999 at the start of the week from GHC 6.8997 posted the previous week. It rose by 0.75%, week-on-week, against the Euro to begin the week  trading at GHC 5.9181 from previous week’s trade values of GHC 5.9629.

On the Open Forex Market (oanda.com), the Cedi depreciated by 0.50% to trade at GHC 5.5418 at the start of the week from previous week’s trade value of GHC 5.5142 against the US Dollar. The Cedi recovered parts of previous week’s losses against the Pound and the Euro as it appreciated by 0.16% and 0.61% to begin the week trading at GHC 7.1109 and GHC 6.1130 from previous week’s trading values of GHC 7.1222 and GHC 6.1505 respectively. The Pound fell against a host of currencies including the Cedi after two Bank of England officials unexpectedly voted to cut UK interest rates this month while others including the governor noted they would consider a cut if global and Brexit headwinds did not lift.

According to the Bank of Ghana inter-bank rates, the Ghanaian Cedi began 2019 at GHC 4.8291 [January 2nd, 2019] against the US Dollar and is currently selling at GHC 5.3625 [November 11th, 2019] indicating an 11.05% year-to-date depreciation. Similarly, on the Open Forex Market (oanda.com), the Ghanaian Cedi traded at GHC 4.8780 [January 2nd, 2019] and is currently trading at GHC 5.5418 [November 11th, 2019], representing a 13.61% year-to-date depreciation of the Cedi against the US Dollar.