Currency News for March 22nd 2021

The Ghana Cedi was mixed against its three major trading partner currencies on both the Bank of Ghana (BoG) inter-bank trading platform and the Open Forex Market (oanda.com). The Cedi posted losses against the US Dollar and the Euro but maintained its resilience against the British Pound Sterling as it recorded its fourth consecutive weekly gain on the BoG inter-bank trading platform. On the Open Forex Market, the Cedi this week fell for the first time in eleven weeks against the Dollar but gained momentum to post gain against the Pound and the Euro.

The Cedi’s performance at the week of the week comes after the central bank stayed the policy rate at 14.5% for the sixth consecutive time, sending a signal to the many offshore investors that have thronged to local assets in recent times that rates are not expected to drop significantly in the short-term. The bank noted that risks to inflation in the near-term remain broadly balanced, however, there are emerging short-term pressures emanating from the rising crude oil prices and the direct and secondary price effects of the revenue measures announced in the 2021 budget and hence the decision to stall the prime rate.

On the BoG inter-bank trading platform, the Cedi depreciated by 0.01% and 0.03% to open the week trading at GHC 5.7302 and GHC 6.8388 from previous week’s opening trade values of GHC 5.7299 and GHC 6.8368 against the Dollar and the Pound respectively. Safe-haven flows bolstered the Dollar’s appeal as it added to its previous week’s gain against the Cedi. Against the Pound, the Cedi appreciated by 0.25% to trade at GHC 7.9357 at the start of the week from previous week’s trade value of GHC 7.9553.

On the Open Forex Market (oanda.com), the Cedi weakened by 0.09% to begin the week trading at GHC 5.7549 from previous week’s open trade figure of GHC 5.7500 against the Dollar. The Cedi strengthened by 0.35% and 0.08% against the Pound and the Euro as it opened the week trading at GHC 7.9722 and GHC 6.8565 from previous week’s trade value of GHC 7.9999 and GHC 6.8620 respectively. The Cedi maintained its traction against the single currency as new lockdowns in some parts of the Eurozone coupled with slow vaccine rollouts across Europe stocked fears over the pace of the zone’s economic recovery.

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 5.7302 [March 22nd, 2021] indicating a 0.57% 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 5.7549 [March 22nd, 2021], representing a 2.27% year-to-date appreciation of the Cedi against the US Dollar.