Currency News for December 13, 2021

Liquidity on each end of the currency market caused the Cedi to move in opposite directions as the local unit slid against its three major trading partner currencies on the Bank of Ghana (BoG) inter-bank trading platform whilst on the Open Forex Market (oanda.com), it found itself soaring against the three.

Increased remittances into Ghana ahead of the festive season helped to shore up the supply of forex on the open forex market, boosting the supply of forex. However, increasing import bills, repatriation of matured bond proceeds, and uncertainties clouding Ghana’s economy kept the local currency under pressure on the BoG inter-bank trading platform despite the central bank’s continuous intervention. The Governor of the central bank, Ernest Addison, in a speech noted that although Ghana’s economic outlook remained positive, potential risks to economic gains, inflation, and currency stability lingers.

On the BoG inter-bank trading platform, the Cedi slid by 0.19%, 0.16%, and 0.19% to open the week quoted at GHC 5.9346, GHC 7.8633, and GHC 6.6979 from last week’s opening trade values of GHC 5.9232, GHC 7.8506, and GHC 6.6853 against the Dollar, the Pound and the Euro respectively. The greenback gained as concerns over the Omicron variant boosted safe-havens at the expense of risky and higher-yielding currencies.

On the Open Forex Market (oanda.com), the Cedi traded higher by 0.90%, 0.98%, and 0.89% as it opened the week trading at GHC 6.1400, GHC 8.1291, and GHC 6.9319 from last week’s opening quotes of GHC 6.1956, GHC 8.2098, and GHC 6.9942. The Pound took a downturn against most of its peers following comments passed by Prime Minster Boris Johnson that the UK faced an Omicron “tidal wave”.

According to the BoG inter-bank rates, the Ghana Cedi began the year at GHC 5.7631 [January 4th, 2021] against the US Dollar and is currently quoted at GHC 5.9346 [December 13th, 2021] indicating a 2.98% 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 6.1340 [December 13, 2021], representing a 4.27% ytd depreciation against the US Dollar.