Currency News for June 15th 2020

The Ghanaian Cedi continued to remain under intense pressure after it extended its losing streak against the US Dollar for the third consecutive time this week on the Bank of Ghana (BoG) inter-bank trading platform. The Cedi’s worsening performance began in the heat of the spread of the COVID-19 pandemic as investors began to flee to safe-haven assets and currencies. Since then the local currency has struggled to post a recovery despite a resurgence in risky assets following the gradual easing of lockdown restrictions globally.

The Cedi is believed to further extended its losses against some of its major trading partner currencies on fears that Ghana could be forced into an early redemption of its 7 and 15-year bonds issued in March 2017, of which Franklin Templeton subscribed to over 90% of the total issuance. This follows news that the giant US-based financial institution is winding up six debt funds that managed over USD 3 billion in India after struggling to meet clients’ claims.

On the BoG inter-bank trading platform, the Cedi lost 0.48% and 0.36% to trade at GHC 5.6527 and GHC 6.3778 at the start of the week from previous week’s trade values of GHC 5.6256 and GHC 6.3547 against the Dollar and the Euro respectively. The Dollar built on previous weeks’ gains against the Cedi on its safe-haven appeal and also on efforts employed by the US Fed to continue its extraordinary support for the US economy. Against the British Pound Sterling, the Cedi gained 0.54% to begin the week trading at GHC 7.1004 from previous week’s trade value of GHC 7.1389.

On the Open Forex Market (oanda.com), the Cedi depreciated by 0.19% and 0.01% to start the week at GHC 5.8121 and GHC 6.5530 from previous week’s trading figures of GHC 5.8010 and GHC 6.5526 against the Dollar and the Euro respectively. Against the Pound, the Cedi appreciated by 1.01% to trade at GHC 7.2924 from previous week’s trade value of GHC 7.3670. The Cedi gained momentum to recover part of previous weeks’ decline against the Pound as Brexit concerns coupled with speculation about negative interest rates in the UK posed downside risk to the Pound’s outlook.

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 5.6527 [June 15th, 2020] indicating a 2.09% year-to-date depreciation. 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 5.8121 [June 15th, 2020], representing a 2.04% year-to-date depreciation of the Cedi against the US Dollar.