Currency News for February 15th 2021

The Cedi this week extended its continuous run against the US Dollar on the Open Forex Market (oanda.com) for the sixth consecutive time as slow demand for forex coupled with foreign portfolio inflows remain supportive of the Cedi’s performance so far in the year. On the Bank of Ghana (BoG) inter-bank trading platform, the Cedi gained marginally against the Dollar to post a positive year-to-date performance after a relatively stable performance.

The most recent BoG forex forward rates auction results showed demand for Dollars cooling off as the bid cover ratio eased to 1.96 times, its lowest in more than a year. Results from the two forex forward rates auctions held in January also showed that the bid cover ratio came in at 2.59 times and 2.76 times, which compares with the usual over 3.0 times bid cover ratio experienced last year.

On the BoG inter-bank trading platform, the Cedi gained by 0.01% to begin the week trading at GHC 5.7626 as against previous week’s trade value of GHC 5.7632 against the Dollar. The Dollar’s weakness against some of its trading pairs has mainly come on the back of a gradual pick up in investors’ risk sentiments as expectations of massive US stimulus package and hopes of an extended period of ultra-easing monetary policy boost appetites for risk. Against the Pound and the Euro, the Cedi tumbled by 1.28% and 0.70% to trade at GHC 8.0134 and GHC 6.9864 at the start of the week from previous week’s trade values of GHC 7.9123 and GHC 6.9375 respectively.

On the Open Forex Market (oanda.com), the Cedi appreciated by 0.04% to trade at GHC 5.8142 at the start of the week from previous week’s trade value of GHC 5.8167 against the Dollar. The Cedi, however, lost momentum to build on previous week’s gains against the Pound and the Euro as it declined by 1.24% and 0.71% to begin the week trading at GHC 8.0832 and GHC 7.0541 against last week’s opening trade figures of GHC 7.9844 and GHC 7.0043 respectively. The Pound rose against the local currency as the impressive pace of the UK vaccination programme lifts hopes of an earlier recovery in the UK.

According to the Bank of Ghana inter-bank rates, the Ghanaian Cedi began the year 2021 at GHC 5.7631 [January 4th, 2021] against the US Dollar and is currently selling at GHC 5.7626 [February 15th, 2021] indicating a 0.01% year-to-date appreciation. Similarly, on the Open Forex Market (oanda.com), the Ghanaian Cedi traded at GHC 5.8885 [January 4th, 2020] and is currently trading at GHC 5.8167 [February 15th, 2021], representing a 1.26% year-to-date appreciation of the Cedi against the US Dollar.