Currency News for September 6, 2021

The Cedi’s weakness further worsened as it began the week nursing losses across the board 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 local currency has come under intense pressure over the past few months erasing its gains registered in the first three months of the year as demand pressures create liquidity challenges for importers and businesses with offshore commitments. Demand for forex in recent times has picked up steam as most economies open up to international trade. Buoyed by improved forex reserve position, Ghana’s central bank has hinted at its readiness to continue to support the Cedi if the trend further worsens.

On the BoG inter-bank trading platform, the Cedi tumbled by 0.11%, 0.57%, and 0.66% to open the week trading at GHC 5.8593, GHC 8.0999, and GHC 6.9503 from last week’s open trading values of GHC 5.8531, GHC 8.0539, and GHC 6.9049 against the Dollar, the Pound, and the Euro respectively. The Dollar built on its gains against the Cedi as concerns about slowing global growth boosted the greenback’s safe-haven appeal despite disappointing US jobs data.

On the Open Forex Market (oanda.com), the Cedi plunged by 0.39%, 0.97%, and 0.98% to trade at GHC 6.0678, GHC 8.3988, and GHC 7.2022 on the first working day of the week from last week’s opening trade values of GHC 6.0444, GHC 8.3179, and GHC 7.1323 against the Dollar, the Pound, and the Euro respectively. The Euro gained against a host of currencies including the Cedi as inflation worries persisted following the release of data which showed Eurozone inflation increased to 3%, the highest in a decade.

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 5.8593 [September 6, 2021] indicating a 1.67% year-to-date (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 6.0678 [September 6, 2021], representing a 3.04% ytd depreciation against the US Dollar.