Currency News for June 28th 2021

The Cedi this week extended its weekly losses against the US Dollar on the Bank of Ghana (BoG) inter-bank trading platform for the sixth consecutive time as the local currency remained on course to shed its gains accumulated from the start of the year. On the Open Forex Market (oanda.com), the Cedi sustained losses against its three major trading partner currencies after it failed to build on its last week’s gains.

The local currency after an impressive start to the year mainly as a result of the BoG’s support through its bi-weekly forex forward auctions as well as proceeds from the 2021 Eurobond is currently thinning out its gains amid concerns of ballooning public debt stock and declining rates in Ghana. The Cedi will be expected to continue to remain under pressure in the second half of the year as COVID related uncertainties continue to linger at a time when some economies are experiencing a third wave.

On the BoG inter-bank trading platform, the Cedi plunged by 0.14% and 0.35% to trade at GHC 5.7627 and GHC 6.8773 at the start of the week from previous week’s opening trade values of GHC 5.7546 and GHC 6.8534 against the Dollar and the Euro respectively. The Dollar gained against most of its trading pairs as risk appetite fell following resurgence of COVID cases in some parts of the world. Against the British Pound Sterling, the Cedi was little changed as it moved from GHC 8.0075 traded last week to start the new week at GHC 8.0072.

On the Open Forex Market (oanda.com), the Cedi fell across the board against the three majors. Its tumbled by 0.54%, 0.69%, and 0.83% to begin the week at trading values of GHC 5.8575, GHC 8.1385, and GHC 6.9870 from previous week’s opening trade figures of GHC 5.8260, GHC 8.0831, and GHC 6.9296 against the Dollar, the Pound, and the Euro respectively. The Euro regained part of last week’s loss against the Cedi as economic data out of the Eurozone signalled that recovery is gaining traction across the bloc, boosting investor confidence.

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 5.7627 [June 28th, 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, 2021] and is currently trading at GHC 5.8575 [June 28th, 2021], representing a 0.53% year-to-date appreciation of the Cedi against the US Dollar.