Currency News for March 29th 2021

The Ghana Cedi was mixed at the start of the week 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). On the BoG inter-bank trading platform, the Cedi weakened for the third consecutive time against the US Dollar after registering a strong performance in the first two months of the year. It, however, recorded gains against the British Pound Sterling and the Euro.

The Cedi has remained strong against its three major trading partner currencies on the Open Forex Market as it remains on course to close the first quarter with positive year-to-date gains against the three. The Cedi’s stability has come on the back of a slowdown in demand for Dollars by importers and businesses as well as a strong expression of interest in local assets by offshore investors. Data released by the Central Securities Depository as of the end of February has shown that offshore foreign investors holding in local debt assets stood at GHC 34 billion as against GHC 30 billion over the same period last year.

On the BoG inter-bank trading platform, the Cedi depreciated by 0.03% against the Dollar to open the week trading at GHC 5.7317 from previous week’s opening trade figure of GHC 5.7302. The greenback extended its gains against the local currency after inflation concerns in the US pushed up US bond yields and increased the Dollar’s appeal. Against the Pound and the Euro, the Cedi strengthened by 0.36% and 1.28% to trade at GHC 7.9074 and GHC 6.7515 at the start of the week from previous week’s opening trade values of GHC 7.9357 and GHC 6.8388 respectively.

On the Open Forex Market (oanda.com), the Cedi fell by 0.50% and 0.03% against the Dollar and the Pound to trade at GHC 5.7837 and GHC 7.9745 at the start of the week from previous week’s trade values of GHC 5.7549 and GHC 7.9722 respectively. Against the Euro, the Cedi built on previous week’s gains as it rose by 0.66% to trade at GHC 6.8115 at the start of the week from previous week’s trade value of GHC 6.8565. The local currency consolidated its gains against the common currency as sluggish vaccine rollout continue to pose threats the Eurozone’s economic recovery amid a third wave sweep across the zone.

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 5.7317 [March 29th, 2021] indicating a 0.54% 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 5.7837 [March 29th, 2021], representing a 1.78% year-to-date appreciation of the Cedi against the US Dollar.