Currency News for November 30th 2020

Ghanaian Cedi begun the week sustaining losses against its three major trading partner currencies on both the Bank of Ghana (BoG) inter-bank trading platform and on the Open Forex Market (oanda.com). Improvement in investor’s risk appetite failed to give the Cedi a boost as uncertainties ahead of next week’s elections coupled with increasing demand mounted pressures on the local currency.

The Cedi is, however, expected to be pressured to maintain its resilience as it remains on course to post its biggest performance against the US Dollar in more than five years. Proceeds realized from two Dollar-denominated 3-year fixed-rate bonds issued in mid-November in line with efforts by the central bank to build additional forex reserves is likely to shore up the supply of forex to meet the growing demand ahead of the festive season.

On the BoG inter-bank trading platform, the Cedi declined by 0.02%, 0.68%, and 1.58% to open the week trading at GHC 5.7168, GHC 7.6467, and GHC 6.8593 from previous week’s trade values of GHC 5.7159, GHC 7.5947, and GHC 6.7526 against the Dollar, the British Pound Sterling, and the Euro respectively. Diminishing demand for safe haven assets and currencies following hopes of a smooth transition of power in the US as well as progress in COVID-19 vaccines failed to give respite to the Cedi as it posted its third consecutive week of losses against the Dollar.

On the Open Forex Market (oanda.com), the Cedi dipped by 0.42%, 0.47%, and 1.28% to trade at GHC 5.8728, GHC 7.8348, and GHC 7.0272 at the start of the week from previous week’s trade values of GHC 5.8480, GHC 7.7978, and GHC 6.9385 against the Dollar, the Pound, and the Euro respectively. The Pound added onto previous week’s gains against the Cedi as investors remained optimistic that a Brexit deal was in reach.

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 5.7168 [November 30th, 2020] indicating a 3.25% 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 5.8728 [November 30th, 2020], representing a 3.10% year-to-date depreciation of the Cedi against the US Dollar.