Currency News for February 17th 2020

The Ghanaian Cedi extended its weekly gains against its three major trading pairs for the fifth consecutive time this year following positive investor sentiments surrounding the Cedi’s outlook. The Cedi’s rebound according to currency analysts is as a result of Ghana’s commitment to greater fiscal discipline, reforms, and improved currency management. The Cedi accordingly, opened the week trading at 5, 3, and 8 months high against the US Dollar, the British Pound Sterling, and the Euro respectively on the Bank of Ghana (BoG) inter-bank trading platform.

The Cedi is expected to further extend its gains after proceeds from the recently issued Eurobond hits the accounts of the central bank which will improve the country’s reserves. The government of Ghana in early February issued long-dated Eurobonds with 7-year, 14-year, and 41-year maturities to raise a total of USD 3.0 billion. The proceeds will strengthen the country’s Gross International Reverses which currently stands at USD 8.4 billion and will thus support the central bank to continue its forward forex auctions.

On the BoG inter-bank trading platform, the Cedi gained 1.35%, 0.80%, and 2.25%, week-on-week, to trade at GHC 5.2902, GHC 6.8842, and GHC 5.7316 at the start of the week from previous week’s trade values of GHC 5.3628, GHC 6.9394, and GHC 5.8635 against the Dollar, the Pound, and the Euro respectively. The Cedi posted its seventh consecutive gain against the single currency as concerns about growth in the bloc weighed on the Euro. Recent Eurozone data has hinted at a soft EU economy as annual growth in the region came in weaker than expected.

On the Open Forex Market (oanda.com), the Cedi appreciated by 1.77%, 0.91%, and 2.66%, week-on-week, to begin the week trading at GHC 5.3409, GHC 6.9569, and GHC 5.7888 from previous week’s trading values of GHC 5.4374, GHC 7.0206, and GHC 5.9471 against the Dollar, the Pound, and the Euro respectively. The Pound edged lower against the Cedi as conflicting views from the UK and the EU on how to proceed with trade negotiations weighed on the Pound. However, the Pound made gains against most of its trading pairs as expectations grew in anticipation of a more expansionary budget following the appointment of a new finance minister.

According to the Bank of Ghana inter-bank rates, the Ghanaian Cedi began the year 2020 at GHC 5.5370 [January 2nd, 2020] against the US Dollar and is currently selling at GHC 5.2902 [February 17th, 2020] indicating a 4.46% year-to-date appreciation. Similarly, on the Open Forex Market (oanda.com), the Ghanaian Cedi traded at GHC 5.6961 [January 2nd, 2020] and is currently trading at GHC 5.3409 [February 17th, 2020], representing a 6.24% year-to-date appreciation of the Cedi against the US Dollar.