Currency News For October 28th, 2019

The Ghanaian Cedi began the week dipping to an all-time low against the US Dollar on the Bank of Ghana (BoG) inter-bank trading platform as businesses decry the continuous and mild depreciation of the Cedi. On the Open Forex Market (oanda.com), the local currency fell to its lowest since end-September, 2019. Ahead of the presentation of the 2020 budget statement, the Cedi’s performance remained the key concern of importers and investors as they urge the government to implement sound policies to support the Cedi. The Cedi, however, gained momentum to recover parts of previous weeks’ losses against the British Pound Sterling and the Euro after Brexit uncertainties weighed on the Pound.

The Cedi’s performance over the week comes after the International Monetary Fund (IMF) described Ghana’s economic outlook as favourable after the conclusion of its first assessment under the Fund’s Article IV programme. The IMF noted that the strong macroeconomic gains were supported by a safer banking sector, prudent economic policies, and a strong extractive sector. These sentiments are expected to boost investor confidence in the economy in a bid to increase foreign direct investments.

On the BoG inter-bank trading platform, the Cedi depreciated by 0.20% against the Dollar as it traded at GHC 5.3349 at the start of the week from previous week’s trade value of GHC 5.3242. The greenback gained against a host of currencies on rising optimism that the US and China will reach a trade deal. Against the Pound and the Euro, the Cedi gained 0.74% and 0.24% to trade at GHC 6.8606 and GHC 5.9174 at the start of the week from last week’s trade figures of GHC 6.9118 and GHC 5.9329 respectively.

On the Open Forex Market (oanda.com), the Cedi extended its weekly losses against the Dollar to three weeks as it weakened by 0.42% this week to trade at GHC 5.5033 at the start of the week from previous week’s trade value of GHC 5.4800. The Cedi appreciated by 0.47% and 0.16% against the Pound and the Euro to begin the week trading at GHC 7.0676 and GHC 6.1045 from previous week’s trade figures of GHC 7.1008 and GHC 6.1142 respectively. The Pound fell against the Cedi after UK Prime Minister Boris Johnson called for an election which heightened uncertainties over Britain’s divorce from the European Union.

According to the Bank of Ghana inter-bank rates, the Ghanaian Cedi began 2019 at GHC 4.8291 [January 2nd, 2019] against the US Dollar and is currently selling at GHC 5.3349 [October 28th, 2019] indicating a 10.47% year-to-date depreciation. Similarly, on the Open Forex Market (oanda.com), the Ghanaian Cedi traded at GHC 4.8780 [January 2nd, 2019] and is currently trading at GHC 5.5033 [October 28th, 2019], representing a 12.82% year-to-date depreciation of the Cedi against the US Dollar.