The Ghanaian Cedi began the first week of the year posting a mixed performance against its three major trading partner currencies on the Bank of Ghana (BoG) inter-bank trading platform and on the Open Forex Market (oanda.com). The local currency in 2019 posted its worst performance in four years against the US Dollar at a year-to-date depreciation of 14.65% on the BoG inter-bank trading platform. This mainly came on the back of a 100 basis point (bps) cut in the policy rate from 17.0% to 16.0%, rising public debt stock, a surge in demand for forex by importers and corporate entities among others in 2019.
The Cedi, however, began the year showing signs of resilience as it recovered part of last month’s weakened performance. This came after the central bank announced its intention to continue the forex forward auction in 2020. The commencement of the forex forward auction in October, 2019 boosted the Cedi as it gave an indication of the BoG’s readiness to support the local currency. In 2020, the central bank aims to sell USD 715.00 million to help improve forex liquidity.
On the BoG inter-bank trading platform, the Cedi appreciated by 0.07% and 0.23% to trade at GHC 5.5368 and GHC 6.1913 from previous week’s trade values of GHC 5.5406 and GHC 6.2055 against the Dollar and the Euro respectively. Against the British Pound Sterling, the Cedi fell by 0.07% to trade at GHC 7.2748 at the start of the week from previous week’s trade value of GHC 7.2698. The Pound gained against the Cedi despite growing worries that Britain could crush out of the European Union without a trade deal at the end of January.
On the Open Forex Market, the Cedi lost 0.08% and 0.17% to trade at 5.7201 and GHC 7.5104 from previous week’s trade values of GHC 5.7153 and GHC 7.4974 against the Dollar and the Pound respectively. The Dollar gained against the Cedi following a rush into safe-haven currencies and assets after US airstrikes killed a top Iranian military official. The Cedi, however, appreciated by 0.07% against the Euro to trade at GHC 6.3967 at the start of the week from 6.4011 posted the previous week.
According to the Bank of Ghana inter-bank rates, the Ghanaian Cedi began 2020 at GHC 5.5370 [January 2nd, 2019] against the US Dollar and is currently selling at GHC 5.5368 [January 6th, 2020] indicating a 0.00% year-to-date appreciation. Similarly, on the Open Forex Market (oanda.com), the Ghanaian Cedi traded at GHC 5.6961 [January 2nd, 2019] and is currently trading at GHC 5.7201 [January 6th, 2020], representing a 0.42% year-to-date depreciation of the Cedi against the US Dollar.
