Currency News for May 24th 2021

The Cedi crushed against its three major trading partner currencies on both the Bank of Ghana (BoG) inter-bank trading platform and the Open Forex Market at the start of the week as rising demand for forex by businesses overshadowed news that the European Union was planning to take Ghana off the list of countries that are deficient in AML/CFT compliance.

The Cedi came under pressure this week erasing some of its gains against the US Dollar and the Euro as business bought foreign currencies to meet dividend payments. This comes as some large organizations announce dates for their annual general meetings. Auction results from the most recent forex forward rates showed that demand for forex at future dates came in excess of 1.87 times the offer amount.

On the BoG inter-bank trading platform, the Cedi depreciated by 0.03%, 0.21%, and 0.53% to trade at GHC 5.7354, GHC 8.1144, and GHC 7.0024 at the start of the week compared with previous week’s trade values of GHC 5.7334, GHC 8.0972, and GHC 6.9654 against the Dollar, the British Pound Sterling, and the Euro respectively. The Pound recovered from its last week loss against the Cedi on signs that the UK economy was picking up following the gradual lifting of lockdown restrictions.

On the Open Forex Market (oanda.com), the Cedi plunged by 0.48%, 0.75%, and 0.95% to begin the week trading at GHC 5.8030, GHC 8.2112, and GHC 7.0820 compared to previous week’s trade figures of GHC 5.7754, GHC 8.1503, and GHC 7.0156 against the Dollar, the Pound, and the Euro respectively. The Euro nursed gains against most of its trading pairs as the region appears to be mounting a powerful rebound from its technical recession.

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 5.7354 [May 24th, 2021] indicating a 0.48% year-to-date appreciation. Similarly, on the Open Forex Market (oanda.com), the Ghanaian Cedi traded at GHC 5.8885 [January 4th, 2021] and is currently trading at GHC 5.8030 [May 24th, 2021], representing a 1.45% year-to-date appreciation of the Cedi against the US Dollar.