Currency News for September 13, 2021

The Cedi, boosted by the central bank’s increasing intervention, posted its first week-on-week gain in four months against the Dollar at the start of the week on the Bank of Ghana (BoG) inter-bank trading platform. On the Open Forex Market (oanda.com), the Cedi registered gains across the board against its three major trading partner currencies, the first of such moves since the first week in August.

The Cedi’s gains against some of its majors comes after the central bank for the second consecutive time sold USD 75.0 million in its bi-weekly forex forward rate auction representing a 200% jump over its earlier projected sale figure of USD 25.0 million. The BoG’s recent intervention in the currency space is sustaining the Cedi which had overturned a 0.5% year-to-date (ytd) gain in April to a more than 1.5% ytd loss as of the close of August. Ghana’s improved international reserves position is expected to be harnessed by the BoG to continue its regular intervention in the currency space.

On the BoG inter-bank trading platform, the Cedi appreciated by 0.01% and 0.46% to open the week trading at GHC 5.8590 and GHC 6.9186 compared to last week’s open trade values of GHC 5.8593 and GHC 6.9503 against the Dollar and the Euro respectively. The Dollar weakened against a host of currencies including the Cedi after US jobs data showed that jobs growth slowed painting a gloomy picture about the US economy’s recovery path. Against the Pound, the Cedi lost by 0.13% to trade at GHC 8.1107 at the start of the week from last week’s open trade figure of GHC 8.0999.

On the Open Forex Market (oanda.com), the Cedi strengthened by 0.01%, 0.08%, and 0.60% to trade at GHC 6.0672, GHC 8.3921, and GHC 7.1589 at the start of the week compared to last week’s opening trade values of GHC 6.0678, GHC 8.3988, and GHC 7.2022 against the Dollar, the Pound, and the Euro respectively. The Cedi rose against the Dollar recovering part of previous weeks’ losses as weaker GDP figures in the UK capped the Pounds gains.

According to the BoG 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 5.8590 [September 13, 2021] indicating a 1.66% ytd depreciation. 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 6.0672 [September 13, 2021], representing a 3.03% ytd depreciation against the US Dollar.