Currency News for November 22, 2021

A move by Ghana’s central bank to further tighten its intervention in the currency market helped the Cedi to gain some respite on the Open Forex Market (oanda.com) as it posted gains against its three major trading partner currencies. The Bank of Ghana (BoG) in a statement indicated that its bi-weekly forex forward rates auctions were to be held on a weekly basis with a target amount of USD 40.0 million. This is to meet the seasonal spike in forex demand during the yuletide.

A decision by the Monetary Policy Committee of the BoG to hike the prime rate for the first time in more than five years as it aims to contain mounting risks on the inflation outlook is also expected to give the local unit some boost amid rising demand for forex. Rising inflation, high energy prices, uncertainties surrounding food prices, and investor behaviour were some key issues that influenced the BoG to deliver its first rate hike since November, 2015.

On the BoG inter-bank trading platform, the Cedi lost by 0.13% to open the week trading at GHC 5.9143 from last week’s opening quote of GHC 5.9067. The Dollar’s recent strengthening against most of its peers continued on the back of growing expectations that the Fed will raise its rate faster as compared to other major central banks. The Cedi, however, extended its run against the Pound and the Euro as it added 0.06% and 1.33% this week to its earlier gains. It traded at GHC 7.9310 and GHC 6.6574 at the start of the week from last week’s opening trade values of GHC 7.9356 and GHC 6.7468 respectively.

On the Open Forex Market (oanda.com), the Cedi surged by 0.21%, 0.24%, and 1.65% to trade at GHC 6.1683, GHC 8.2797, and GHC 6.9477 at the start of the week from last week’s opening quotes of GHC 6.1814, GHC 8.2995, and GHC 7.0644 against the Dollar, the Pound, and the Euro respectively. Fears that renewed lockdown restrictions across some European countries would derail the bloc’s recovery sent the single currency tumbling against some of its peers.

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 5.9143 [November 22, 2021] indicating a 2.62% year-to-date (ytd) depreciation. Similarly, on the Open Forex Market (oanda.com), the Ghana Cedi traded at GHC 5.8885 [January 4th, 2021] and is currently trading at GHC 6.1683 [November 22, 2021], representing a 4.75% ytd depreciation against the US Dollar.