Currency News for December 14th 2020

After a relatively peaceful election last week where the incumbent government was retained, the Ghanaian Cedi recorded gains against the US Dollar and the British Pound Sterling on the Open Forex Market (oanda.com). The local currency posted gains against the two as investors anticipate no drastic change in the current fiscal and monetary policies. Expectations that the current fiscal consideration process will be extended whilst the rigorous monetary policies will be continued boosted investor confidence in the Cedi.

The Cedi on the Bank of Ghana (BoG) inter-bank trading platform fell against the Dollar, the Pound, and the Euro amidst fears that the rejection of the results of the December elections by the major opposition party has the likelihood to destabilize the country. The performance of the Cedi in the remaining weeks of the year will thus largely depend on post-election related uncertainties coupled with rising demand for forex by importers.

On the BoG inter-bank trading platform, the Cedi lost by 0.02%, 0.39%, and 0.41% to trade at GHC 5.7184, GHC 7.6432, and GHC 6.9502 at the start of the week from previous week’s opening trade values of GHC 5.7171, GHC 7.6134, and GHC 6.9219 against the Dollar, the Pound, and the Euro respectively. The Dollar extended its weekly gains against the Cedi for the fifth consecutive time after the greenback bounced against many of its trading pairs on safe-haven buying as the number of Americans filing for first-time claims for unemployment benefits increased more than expected amid rising COVID-19 infections causing more business restrictions.

On the Open Forex Market (oanda.com), the Cedi appreciated by 0.10% and 0.09% to open the week trading at GHC 5.8796 and GHC 7.8505 from previous week’s trade values of GHC 5.8857 and GHC 7.8578 against the Dollar and the Pound respectively. The Cedi posted its first weekly gain against the Pound in six weeks after the British Prime Minister revealed that the UK was likely to complete its exit from the EU without a trade deal. Against the Euro, the Cedi depreciated by 0.16% to trade at GHC 7.1411 at the start of the week from previous week’s trade value of GHC 7.1297.

According to the Bank of Ghana inter-bank rates, the Ghanaian Cedi began the year 2020 at GHC 5.5370 [January 2nd, 2020] against the US Dollar and is currently selling at GHC 5.7184 [December 14th, 2020] indicating a 3.28% year-to-date depreciation. Similarly, on the Open Forex Market (oanda.com), the Ghanaian Cedi traded at GHC 5.6961 [January 2nd, 2020] and is currently trading at GHC 5.8796 [December 14th, 2020], representing a 3.22% year-to-date depreciation of the Cedi against the US Dollar.