Currency News for October 4, 2021

The Ghana Cedi began the week mixed against its major trading partner currencies on both the Bank of Ghana (BoG) inter-bank trading platform and the Open Forex Market (oanda.com).

The Cedi has maintained a firm footing in 2021 depreciating by 1.84% against the Dollar as of the end of the third quarter, the best in more than 5 years as various central bank initiatives have been mainly supportive of the local currency. The Cedi is further expected to maintain its relative stability in the remainder of the year barring any shocks from the festive season on the back of Ghana’s improved forex reserves position. The country’s forex reserve is to receive a major boost from COCOBOD’s USD 1.5 billion syndicated loan facility which should enable the BoG to continue its regular interventions.

On the BoG inter-bank trading platform, the Cedi was quoted at GHC 5.8702 at the start of the week from last week’s opening trade value of GHC 5.8672 against the Dollar representing a depreciation of 0.05%. The Dollar edged higher against the local currency supported by a sharp increase in US Treasury yields amid an increase in real rates. Against the Pound and the Euro, the Cedi was up by 0.75% and 0.67% after opening the week quoted at GHC 7.9847 and GHC 6.8187 from last week’s opening trade values of GHC 8.0451 and GHC 6.8650 respectively.

On the Open Forex Market (oanda.com), the Cedi traded lower at 0.05% to open the week quoted at GHC 6.0682 from last week’s opening trade value of GHC 6.0654. It recovered from last week’s losses against the Pound and the Euro as it gained by 0.76% and 0.74% to trade at GHC 8.2434 and GHC 7.0481 at the start of the week against last week’s opening trade figures of GHC 8.3066 and GHC 7.1007 respectively. The Pound was muted against a number of peers on signs that the UK’s economic recovery has slowed by more than expected.

According to the BoG inter-bank rates, the Ghana Cedi began the year 2021 at GHC 5.7631 [January 4th, 2021] against the US Dollar and is currently quoted at GHC 5.8702 [October 4, 2021] indicating a 1.86% 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 6.0682 [October 4, 2021], representing a 3.05% ytd depreciation against the US Dollar.